Lending Your Car to a Friend is Not a Wise Idea
July 25, 2020
Good Friends are Wonderful - Them Driving Your Car May Not Be.
You have probably been there before – a good friend has found themselves without a car and has somewhere to be. Renting a vehicle may not be an option and their family vehicles are out of the question, so they come to you to ask if they could borrow your car while you’re not using it. Whether you say yes or no in that situation is ultimately your decision, but before making that decision you should consider plenty of factors that extend beyond your relationship to the person looking to borrow your car: many of those factors revolve around your insurance coverage.
The complications that follow letting someone who is not on your insurance policy are innumerable – in short, if an accident occurs with your car while someone else is behind the wheel, chances are good that you will be found liable for any damages caused. Thankfully, your insurance should cover the expenses, but that coverage of your friend’s incident is likely to affect your rates for future coverage. An increase to your rates is more likely than not, but does depend on the terms of your insurance package.
Some packages, however, will not fully cover accidents caused by a driver of your car who is not listed in the terms of your insurance contract. There are often exceptions to this lack of coverage if the friend who was behind the wheel lives with you or has been explicitly added to your policy prior to their instance of borrowing. There is also precedent set for degrees of coverage based on the length of the borrowing period. According to the Senior Vice President of Public Affairs for the Insurance Information Institute, Jeanne Salvatore, “... [S]ay I borrow your car to go pick up milk, and as long as permission has been verbally granted, you’ll typically be covered.”
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The primary takeaway from all of the potential coverage is that car insurance typically follows the car – not the driver. No matter what kind of insurance your friend may have, if they are behind the wheel of a car that you insure, your insurance will take the brunt of the financial burden. This is not a steadfast rule, however, and it may be the case that your friend’s insurance will follow them no matter which car they are driving.
Beyond the nuance behind are you covered and how much coverage you’ll receive from your insurance company, there is the issue of when your insurer will pay out. In the case of a driver-caused incident involving your car, but driven by a person who is not on your policy, most insurers will only pay out for damages after the driver is found legally responsible. While you may be able to find policies that pay out in advance of a legal ruling, being stranded with a bill for an accident which you did not cause is a daunting thought for everyone.
Ultimately the decision to allow someone else to drive your car is your decision. Know the risks of handing the keys off, though, as chances are good that if something happens to the car, driver, or anyone else on the road as a result of the other person’s driving, you will be faced with the bill. Even if your insurance covers the damages, your rate has potential to increase and you may not get your reimbursement until months later.
Auto insurance companies are facing unprecedented rate increases due to inflation and the increasing cost of repairs. One of the most simple ways to assure your auto insurance rate is providing the best value is to take a defensive driving course - which is available to you online ! For residents of New York, the Improv Traffic School is currently offering their top-rated, fully-online defensive driving course for under $30, making it easier and more affordable than ever to both become a better driver, and save on auto insurance premiums. Some benefits of taking the course include: A guaranteed reduction of up to 10% on insurance rates - The certificate is recognized by all New York State auto insurance companies. Reduction in points on your license - For people with points attached to their driving record, the Defensive Driving Course can help eliminate those marks on your driving history. A fully online learning environment - The course can be completed from the comfort of your own home, with an instant awarding of your certificate upon completion. No final exam - Anxious test-takers, worry not. The Improv School’s course is content-oriented, making the focus more about taking in information than being able to reiterate the contents of the class. The course is designed to benefit you. If your defensive driving certificate is near its expiration date, now is the perfect time to renew without going out of your way. For folks who have previously completed a Defensive Driving Course, the Improv School also offers a 3 Year Renewal Course in order for you to retain your discount. If an online course does not sound like the right choice for you, there is a classroom-style Defensive Driving Course for your consideration. The classroom-based course offers all of the same benefits as the online equivalent, including the reduction of up to 10% on your insurance rates. Whether you’ve been seeking a way to lower your premiums, or simply desire to improve your driving habits, learning more about defensive driving strategies is a simple and efficient way to start.
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