It’s not uncommon for friends to borrow cars—it can be just for a quick run to the store, covering a long leg of a road trip, or you may give your friend unfettered access to a car you don’t necessarily use every day. Of course a friend will always make a concerted effort to drive as safely as possible but accidents do happen. So what do you need to know if your friend is driving your car and a collision occurs? We cover a few of the basics you should be aware of.
Chances are that your insurance liability coverage will cover any damage to another car or injuries sustained by the other driver in a collision. This is because your insurance would likely be the “primary insurance” on the accident. However, this is not a guarantee as every insurance policy may have specific types of coverage. If you have a friend that is going to borrow your car, especially if it’s for a long drive or an extended period of time, you would be wise to get in touch with your insurance agent and ask them exactly what your policy covers and does not with other drivers.
While more often than not, any damage caused to other cars in a collision where your friend was driving your car would be covered by your liability insurance. It is possible, though not guaranteed, that your policy will also cover any damage your friend causes to your car when they were driving it. There is a possibility that your coverage will have limits—meaning that if your friend causes $7,000 worth of damage, your policy may only over $3,500 of it. That difference might be able to be made up by your friend’s insurance policy, or they’ll have to help pay it out of pocket.
To mitigate the risks associated with letting other people drive your car, especially for long distances or an extended period of time, it is smart that both you and your friend review your selective coverages. A short conversation with your agent could clear up any confusion over who is responsible for what before you hand over your vehicle to a friend in need.