Car Insurance Tips When Loaning Your Car To A Friend
There probably has been or will be a time when a relative or one of your friends wants to borrow your car. You wonder if your insurance or theirs would cover them in the case of an accident, and how it would work if they were covered by your insurance. These are never silly questions, and getting some answers is a step in the right direction. Here are some car insurance tips about what you should know before you loan your car to someone.
Before you say yes to the friend or relative that asks if they can drive your car, it’s important to think about what kind of driver they are. If you know the person well, this will make things easier, and if you have been in a car with the person before and can’t remember anything appalling, the person will probably behave responsibly and take care of your vehicle. On the other hand, if the person who asks drove like a maniac saying things like “look, no hands,” or just who just drove with careless disregard for speed limits and vehicle spacing, loaning them your car probably isn’t a good choice. Similarly, if you aren’t certain what kind of driver the person is or what their record looks like, don’t let them drive your vehicle.
When you are certain that you trust the person to drive your car, go ahead and call your insurance agent or company. Ask them if your insurance will cover another person driving your vehicle. Most likely when you first bought the insurance policy, the agent asked you if you wanted another driver added to your plan, a member of your family, for example. If you already have the person added under your coverage, great; if not, the agent can immediately assist you in doing so.
If you don’t see this as a longtime arrangement and do not want to add the person to your insurance you can just ask the agent if your plan would cover another driver not already on the policy. For the most part, insurance remains with the vehicle, but policies differ so you should definitely check to see what your representative has to say. Remember that your original contract between you and the insurance company was established with your driving record, so if you let someone borrow your vehicle often they must be added to the policy. On the upside, you can be sure that the driver will be covered if there is an accident. On the down side, if you add another driver to your policy, you may experience a rate increase that correlates to the new driver’s record.
So, “how does auto insurance work when you loan your car to someone?” Usually the insurance remains with the vehicle, and you are responsible for anything that happens when another person is operating your vehicle. Most likely your insurance policy will cover the driver, but not all of them do, so it is best to double check to be sure. Think twice before you let just anyone drive your car, because any claim you have to file will raise your premium. Hopefully these car insurance tips will help you become more informed on what you are covered for.
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