Are we friends?
All too often we see “friends” driving other “friends” vehicles. This is usually done without asking questions or doing any homework before letting it happen. It is done as freely as if it is a shirt that you are borrowing.
The problem with this is that your car, assets, and way of life are at risk in the event of an accident.
Now that might seem a little harsh and straight to the point, but guess what, it should!
Insurance will ABSOLUTELY cover if your friend gets in an accident with your car. The issue is that it is YOUR Insurance that is going to cover it.
Rule of Thumb
Insurance follows the vehicle first. It will only follow the driver on a secondary basis.
It’s very important to realize that insurance follows the vehicle, and the plates on the vehicle, versus the driver. So that you’re very cautious at who you let drive and borrow your vehicle.
If for some reason the vehicle’s insurance has minimal coverage, doesn’t have coverage or doesn’t have enough coverage to pay for the accident and the damage that was caused the driver’s insurance policy will become a secondary insurance policy that can pay out on this claim.
What is the Solution?
My word of advice is don’t let anybody drive your car. Only the people that are blood relatives, closest to you that live in your household that should be rated on your insurance policy really should be driving your car.
Now I understand certain circumstances will come up and it might be important for somebody to borrow your car, or to drive your car. Just be aware of the situation and how that can come back on you and your insurance.
Obviously if your insurance pays a claim for another driver it can still increase the rates as well. When your insurance pays out, you could get a surcharge on your policy.
Make sure you are using an independent insurance agent who can provide options for you. Don’t know an agent or want a review of your insurance?
Click below to learn more on how to proceed.