Borrowing a friend’s automobile could appear like a simple favor. Nevertheless one fender bender abruptly brings up several issues. Is your friend’s vehicle covered by your current auto insurance while you are driving or is it still insured by the owner’s policy? What’s non owners car insurance and what does it cover? There are several angles to take care of to correctly answer these questions relating to driving someone else’s car.
First of all the owner of the vehicle should insure any driver they will allow behind the steering wheel for liabilities and damages that comes to it. It is almost impossible for automobile insurers to offer blanket Collision and Comprehensive Coverage regardless of which vehicle you drive. However, if you have a standard insurance coverage for your own vehicle it should cover someone else’s car while you drive for possible third party liabilities. Your own policy normally provides secondary auto insurance coverage as the primary coverage is provided by the vehicle owner’s policy.
If you don’t own a vehicle, you can still buy non owners auto insurance coverage for the liabilities occurring as a result of you driving a car not owned by you. This coverage will protect you against claims that you have been negligent and personally liable for the damages. This cover can be used when renting a vehicle as well. In any case, the vehicle owner should have sufficient cover in place before handing over the keys.
People may not think much of borrowing a friend’s cars. However, this may even cause break up of friendships. Getting into lengthy arguments with a friend as to who is responsible for the damages caused or whose insurance will pay for claims when a friend was driving will be testing, especially when the financial losses are substantial. Therefore, it is wise to understand implications of driving someone else’s car and take care of all the insurance issues beforehand.
The same applies to you borrowing your car to a friend. Normally, most policies cover occasional drivers within the standard auto insurance policy. However, you should check that you have auto insurance coverage for occasional drivers to make sure. There are some policies that exclude any other driver but listed drivers in return for lower premium. Besides, you need to check what is considered to be occasional use. If you have a house guest for couple of weeks and they will have full access to the vehicle during their stay it may require you to inform the insurer and maybe pay a little extra premium.
As a general rule people of driving age living with you under the same roof are not considered occasional drivers. Most companies like to know about them and make an adjustment for the likelihood of them getting their hands on the car keys. They may not even be related to you in any way for them to be considered part of the household. So, it is best to tell the carrier about them. Maybe, they end up driving your automobile even though it was never intended. In such cases, you do not want to be arguing who is who.