When you’re in a pinch and need to borrow someone’s car, you might be wondering: “Will I be covered if something goes wrong?” The answer depends on a few factors, but in general, the coverage from the car’s insurance will apply. However, there are a few details you should be aware of before hitting the road.
How Does Insurance Work When Borrowing Someone’s Car?
When you borrow a friend’s or family member’s car with their permission, their insurance policy usually covers you in case of an accident. The vehicle’s insurance generally provides primary coverage, meaning it is responsible for damages and claims. Your personal auto insurance may offer secondary coverage if the vehicle’s policy doesn’t fully cover the damage or if the accident’s costs exceed the vehicle’s limits.
However, if you take the car without permission, things get trickier. This is considered “non-permissive use,” meaning your own insurance would likely need to cover the costs. If you’re not insured, you could be personally liable for any damages, including medical bills and other expenses. In the worst-case scenario, if there’s a fatal accident, you might be liable for significant court costs, which could put you in a financial bind.
Important Action: Review Your Insurance Policy
Before borrowing a car, it’s always best to double-check your own insurance policy. While liability coverage often extends to borrowed vehicles, comprehensive and collision coverage might not. Some insurance providers may also exclude certain drivers or vehicles from coverage, especially if the person borrowing the car lives in the household but isn’t listed on the policy. Knowing the fine details of your policy can save you from unnecessary surprises.
What Happens When You Lend Your Car to Someone Else?
If you decide to lend your car to someone, you need to make sure they have a valid driver’s license and sufficient insurance coverage. If the driver is unlicensed or their license is suspended, and they get into an accident, your insurance may not cover the damages. In such cases, the insurance company could deny your claim, leaving you financially responsible.
Renting a Car
If you’re renting a car, be aware that most personal auto insurance policies don’t fully cover rentals, especially if the driver is at fault. Rental companies often offer additional insurance to cover potential damage to the car, and it’s important to understand what your existing policy covers when renting. Review your policy thoroughly before renting to know if you need additional coverage, or contact your insurance agent for assistance.
Driving for Business Purposes
If you’re using someone else’s car for business-related tasks—whether it’s your employer’s vehicle or a personal vehicle used for work—this is typically covered by your employer’s commercial auto insurance. In this case, the commercial policy provides primary coverage, while your personal insurance may act as secondary. If you use your own car for business regularly, you might want to consider adding supplemental insurance for additional protection.
Conclusion
Whether you’re borrowing a car, lending your car to someone, or renting a vehicle, it’s important to understand how your insurance works in these situations. Always check your policy to ensure you’re adequately covered. If you’re unsure, consult your insurance provider or an agent for clarification. Staying informed can help protect you financially and ensure that you’re covered when driving someone else’s car.
