Borrowing a Friend’s Car
So you’re thinking about letting someone drive your car, keep in mind that you’re not only lending your car, you’re also lending your car insurance. In most states, comprehensive and collision coverage protects your vehicle regardless of who’s driving it.
Car Insurance Follows the Vehicle
This means that if you loan out your car to driver who is not excluded on your policy your car insurance is the primary coverage that would apply if a crash occurred. The driver’s insurance would act as secondary insurance (if any).
Let’s say you lend your car to your roommate for the day. Your roommate hits another driver on the road. The primary coverage that would pay for damages to the other driver is your liability coverage.
This means you’d have to:
• File the claim with your company
• Pay the deductible
• Accept any resulting rate hikes
However, if the accident was not your roommates fault, the claim would be paid by the other driver’s coverage and your insurance would be unaffected.