Is it okay to let a friend borrow your car?

Although you should check your individual policy, most of the time you can let someone drive your car and still have coverage. As long as you give the person permission, and they only drive the car occasionally, there shouldn’t be an issue. Accidents, however, are unpredictable and can happen anytime.

Who is liable if you let someone borrow your car?

If you let a friend borrow your car and he or she causes an accident, your auto insurer would be responsible for paying for damages to the other driver and his or her passengers, up to the limits of your policy. If damages exceed your policy limits, your friend’s insurance would act as secondary coverage.

Why you shouldn’t let someone drive your car?

When you lend a friend your car, you also give them the insurance that goes with it. The financial risk can be severe if that person leads the vehicle to an accident. So, you’ll be the only one to be responsible for damages and financial liabilities sustained in that casualty.

How does insurance work when someone borrows your car?

If a friend borrows your car and causes an accident, your insurance policy pays for any at-fault damages. A rule of thumb to remember in this situation is “car insurance follows the car, not the driver.” It’s still a good idea to make sure whoever drives your car has their own insurance policy, though.

Can I lend my car to a friend long term?

If you have a regular long-term arrangement to either borrow or lend a car, the borrower should probably be added to the owner’s personal auto policy. Ultimately, it’s usually safe to loan your friend your car for occasional errands or projects. And the same goes for borrowing a car.

How does insurance work when you lend your car?

If you lend your uninsured car to someone who has insurance, their policy will usually cover any damage or injury they cause to someone else. However, damage to your vehicle likely won’t be covered. You may also be liable for some of the damages if the driver’s insurance doesn’t cover the full amount.

Can you insure a car owned by someone else?

Adding the owner of the car is typically the easiest way to insure a vehicle you do not own. Listing the owner as an additional interest does not actually raise the cost of a car insurance policy, it simply states someone else has an insurable interest in the vehicle.

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