What to Know About Lending Your Car

Lending your Automobile to A driver who’s listed in your policy

Lending your car to A trusted relative or friend might look like a kind gesture, but it might affect your auto insurance. Find out more about what might happen to your own insurance if somebody else drives your car.

Contrary to popular Belief, auto insurance generally follows the car — not the motorist. If you let somebody else drive your car and they get in an accident, your insurance provider would probably be responsible for paying the claim, based on the coverages in your policy. The claim would go on your insurance record and might affect your auto insurance rates in the future.

Is it OK?

A number of factors May come into play, however, when deciding whose automobile insurance applies if somebody else drives your car and gets in an accident.

Based on your Auto insurance policy, your car insurance can cover your automobile if you intend to let a driver who’s listed in your policy borrow it. That having been said, if the driver has a car collision, it might impact your insurance premium regardless of the fact that you’re not the driver. Because the auto insurance policy is linked to the vehicle, not the driver, your insurance company will take care of the claim. However there are exceptions in certain states, so check with your insurance provider.

Lending your automobile to A driver who is not listed in your policy

If you Will Give your vehicle to a driver that will not be driving your vehicle regularly and will not be listed in your policy, the unlisted driver must have a valid driver’s license and be legally permitted to drive.

What happens if the driver gets into an accident?

If the person you give the vehicle to gets in an accident, it may affect your insurance prices. Despite not being in the vehicle at the moment, you could nevertheless be penalized. Sometimes, this can apply even if the driver was not at fault for the crash.

Things to do before Lending your vehicle

1. Always check that the driver has a valid driver’s license and they are legally permitted to drive.

2. Prove the driver where the evidence of automobile registration and insurance is in your automobile.

3. For peace of mind, speak to the driver to be certain they understand the responsibilities that include borrowing your automobile.

4. You can help limit the possibility of a possible vehicle crash by inspecting your vehicle to make sure it is in good working condition and the gas tank is filled up.

More on this Topic…

It’s also a great thought to know a few exceptions concerning how your insurance may function. You should not just assume that your insurance will pay for the accident and any harm. By way of instance, some policies do not even insure relatives living in your house, unless they are specifically named in your policy. Other policies may provide coverage, but on a more limited basis. Secondly, if the driver of your vehicle isn’t found at fault for your collision, you may not have to worry about your insurance taking a hit. This is because the at-fault motorist’s insurance may cover your buddy’s accidents and repairs to your vehicle.

Remember that Laws vary from state, so it is important to read your policy documents carefully To understand what is covered. If you have questions about your policy and how It helps protect another motorist, ask your agent to help explain.