A common question insurers get from customers is what happens when they lend their cars to a friend and that friend gets into a wreck? How might this scenario affect potential insurance rates and who is responsible to pay for the damages. There is no easy answer to this question; for the most part it differs for drivers depending on their particular insurance policy.
Since there exist such a wide variety of types of car insurance policies, the different types and levels of coverage as well as the rules about letting friends borrow your car can be vastly different depending on the individual structure of your specific insurance policy. There are both a great many situations where a borrowed car will be covered by insurance and where it will not be covered. It is always a smart policy contact your car insurer to find out what the exact rules for your auto insurance policy is when it comes to lending out your car. This way you can be sure you know what will happen if there is an incident with a friend behind the wheel.
There are many situations where your car insurance will pay to cover the damage done to your car and to any other damaged property when there is an accident if the driver of your car is at fault. There are also a lot of auto insurance policies where only those listed on your insurance policy are permitted to drive the car. If there is an incident while someone else is driving, the policy is automatically considered void and will not cover anything. The final consideration about fault is in certain states where no-fault laws allow for some accidents to claim no particular driver at fault and require insurance to pay regardless.
Understanding that there are many different specifics and details of policies and providers, the common rule should be that if you lend out your car and the person driving gets in an accident and they are injured or they injure someone else, you can always be held liable because the vehicle ultimately belongs to you. What this means is that you will be held responsible to pay for any medical or other damages incurred and the injured parties can take you to court for any fees that aren't covered by you or your insurance company.
Regardless of the driver of a car in an accident, fault can be said to apply to the owner of a vehicle. Because of this, you might consider a good rule of thumb to be that when you lend out your car you also lend out your insurance and the potential to have it raised or cancelled in the event of reckless or dangerous driving. No matter who is driving, your insurance will find out about an incident and respond accordingly.
There are a few exceptions when it comes to fault. If you lent your car to a friend and it was later stolen, you aren't responsible for damage that occurred during the theft. If anyone takes your car without permission, including family members who take the car for a joyride without asking, it's the driver's responsibility and not the owner's.
There is an additional exception for valets when it comes to fault. Because some valet drivers at hotels or restaurants can also get into car accidents, if your car is returned with any damage, your insurance will hold the valet and his or her company responsible for the claim, not you and your insurance policy.
It is best to call and talk with your auto insurance representative to find out the specifics and details of your policy before you lend your car out to a friend. This way you can be sure that you are covered no matter what.
Since there exist such a wide variety of types of car insurance policies, the different types and levels of coverage as well as the rules about letting friends borrow your car can be vastly different depending on the individual structure of your specific insurance policy. There are both a great many situations where a borrowed car will be covered by insurance and where it will not be covered. It is always a smart policy contact your car insurer to find out what the exact rules for your auto insurance policy is when it comes to lending out your car. This way you can be sure you know what will happen if there is an incident with a friend behind the wheel.
There are many situations where your car insurance will pay to cover the damage done to your car and to any other damaged property when there is an accident if the driver of your car is at fault. There are also a lot of auto insurance policies where only those listed on your insurance policy are permitted to drive the car. If there is an incident while someone else is driving, the policy is automatically considered void and will not cover anything. The final consideration about fault is in certain states where no-fault laws allow for some accidents to claim no particular driver at fault and require insurance to pay regardless.
Understanding that there are many different specifics and details of policies and providers, the common rule should be that if you lend out your car and the person driving gets in an accident and they are injured or they injure someone else, you can always be held liable because the vehicle ultimately belongs to you. What this means is that you will be held responsible to pay for any medical or other damages incurred and the injured parties can take you to court for any fees that aren't covered by you or your insurance company.
Regardless of the driver of a car in an accident, fault can be said to apply to the owner of a vehicle. Because of this, you might consider a good rule of thumb to be that when you lend out your car you also lend out your insurance and the potential to have it raised or cancelled in the event of reckless or dangerous driving. No matter who is driving, your insurance will find out about an incident and respond accordingly.
There are a few exceptions when it comes to fault. If you lent your car to a friend and it was later stolen, you aren't responsible for damage that occurred during the theft. If anyone takes your car without permission, including family members who take the car for a joyride without asking, it's the driver's responsibility and not the owner's.
There is an additional exception for valets when it comes to fault. Because some valet drivers at hotels or restaurants can also get into car accidents, if your car is returned with any damage, your insurance will hold the valet and his or her company responsible for the claim, not you and your insurance policy.
It is best to call and talk with your auto insurance representative to find out the specifics and details of your policy before you lend your car out to a friend. This way you can be sure that you are covered no matter what.
About the Author:
About the Author: Leigh Jackson is a writer whose work focuses on the Texas insurance industry. Jackson helps insurance purchasers understand the complicated industry and find cheap Texas car insurance policies and no credit check car insurance policies.
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