I’m Borrowing My Friend’s Car … Am I Covered?
Most people have an idea of what’s covered and what’s not under their insurance policies. But at First Baldwin Insurance, we get a lot of questions about borrowing or loaning a car.
Generally, insurance coverage follows the vehicle rather than the driver. So in most instances, as long as the owner of the car has insurance, it’s covered even if someone other than the owner is driving it — as long as they have the owner’s permission.
The borrower’s insurance is considered secondary, meaning that in the event of an accident, it could apply if the owner’s insurance is insufficient to fully cover the damage.
However, there are some exceptions to “permissive use” coverage. For example, permission must be given by the owner, unless the borrower has a reasonable belief that they are allowed to use the car. However, the borrower cannot give permission to someone else. So if your teenager allows one of his or her friends to drive your car to the mall, your coverage probably won’t apply.
Coverage could also be denied if the borrower operates the vehicle in a negligent or criminal manner. And if the borrower is using your car for business purposes, your personal auto policy very likely won’t cover that.
If you have a regular long-term arrangement to either borrow or lend a car, the borrower should be added to the owner’s personal auto policy. Those who don’t own a car, but often borrow one, might also consider “named non-owner coverage,” an endorsement that provides bodily injury and property damage liability, uninsured motorists coverage and more.
Usually, it’s safe to loan your friend your car for the occasional errand, but if you have any questions about your coverage, send us an email, or drop by our office. After all, we don’t want to just sell you insurance. We want to help you make informed choices on one of the most important decisions of your life.
First Baldwin Insurance