How does insurance coverage work when someone borrows your car, and they also have insurance?

UPDATED: Sep 19, 2011

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UPDATED: Sep 19, 2011Fact Checked

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Asked September 19, 2011

1 Answer

Car insurance in the United States is purchased for a specific vehicle, not for a particular person. What that means is that no matter how much insurance someone has on their own vehicle, it probably isn't going to cover your car when the friend borrows it. For that, your own insurance will be the key, because it was written for your vehicle and anyone who is legally driving it.

Any time you let someone else borrow your car; it is a good idea to call your insurance agent. By keeping the insurance company informed of who is driving your vehicle, you are making sure that your coverage is being extended to the borrower, and your insurance company cannot try to get out of paying a claim by saying that the driver had not been previously approved.

If your friend is only borrowing the car for a few minutes, your insurance will cover any problems she has while driving it, but if the car is going to be loaned for a longer period of time, the best thing to do is to notify your insurance company. They will want the driver license number of your friend, and if you add them as a listed driver your insurance rates may increase slightly if it turns out that she has a less than perfect driving record.

If your insurance company will not cover someone who is borrowing your car, it is probably time to start looking for an insurance company that works for you. Buying insurance online is fast and easy, and you can even print out your insurance cards when you buy the new policy, which means your friend can start driving right away, with the confidence that she is protected if the unthinkable happens. Car insurance is no joke, but there is no reason to waste your time driving around town when you can get a reliable policy from a major insurance company from the comfort of your own home.

Answered September 19, 2011 by Anonymous

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