Most drivers who own cars have asked themselves at some point in time,
“If I loan my car to a friend and they’re in an accident,
will my friend’s auto insurance pick up the bill?” It’s
a common misconception that car insurance follows the driver, not the
car. A lot of people think that if their friend has auto insurance, the
friend’s coverage will kick in if they are involved in a
car accident. That however, is not the case.
Car insurance covers the car, not the driver. So, if you let your friend,
your aunt or uncle, or your co-worker borrow your car and they’re
in a crash, you could be liable for the accident if they are at-fault.
“What if my friend or visiting relative has great coverage with high
limits and a low deductible?” Unfortunately, if your friend or family
member (who is not included on your auto insurance policy), is in an accident
while driving your car,
your auto insurance would be the one to cover the damages because “auto insurance follows
the car, not the driver.”
Are You OK with Lending Your Auto Insurance?
Suppose your friend wants to borrow your truck on moving day. Or, perhaps
your girlfriend is home on break from college and needs to drive your
car around town for the weekend. Or, perhaps your mom is visiting from
Pennsylvania and she wants to take the grandkids out for lunch and shopping.
If you’re considering letting someone who is not on your auto insurance
policy borrow your vehicle, realize that you are lending them your auto
insurance as well.
Here’s a breakdown of how this works:
If you let someone borrow your car and they are not covered on the policy
and your friend causes an accident, your auto insurance will be the
primary coverage in the accident. Meaning, your auto insurance would be primarily liable
for the damages. However, the driver’s auto insurance would be
- If your friend causes an accident in your vehicle, your insurance will
kick in and you’ll be liable for the deductible and any subsequent
- If your auto insurance coverage is insufficient, your friend’s auto
insurance may have to step in to fill the gaps.
- If your friend gets into an accident and it’s not their fault, you
don’t have to worry about it affecting your auto insurance.
- If your friend is an uninsured driver and the accident is their fault,
you will likely be financially liable for all damages.
Need a West Palm Beach car accident attorney to file a
personal injury claim on your behalf?
Contact the Law Offices of Craig Goldenfarb for a free case evaluation!