What if your friend is asking to borrow your car? It could be just for a few hours or for a few days but few things you need to consider in this case: by borrowing your car to your friend you are also borrowing your insurance. In most States the insurance follows the vehicle, not the driver – meaning whoever drives your car, your insurance is covering them. Do you know what your friend’s driving record looks like? Do they have moving violations or previous accidents? After all, you want your car returned to you in the same condition it was before you gave it to them.
How often will your friend drive your car? If it is more than once a month, you should consider adding them to your policy to avoid any undisclosed driver issues.
Should your friend get into an accident while driving your car, your insurance company will be paying for the damages, and you will be responsible to pay your deductible and any future increases in your insurance premiums. Depending on the severity of the accident, property damage and medical expenses can run into hundreds of thousands of dollars. If your limits of liability on your policy are exhausted, your friend’s insurance is then responsible for the excess damage, assuming your friend also has insurance. If not, you are exposing yourself to a financial ruin.
If you are uncomfortable borrowing your car, maybe offer to drive them instead. That may be the best way to keep the friendship and save you the worry about your car.
We at Bargain Insurance Connection stand by to answer any questions you may have and can help you find the right policy for you. Just call us at 816.453.7722.