If I loan my car to somebody, are they covered by my auto insurance policy?
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Asked January 14, 2013
Most insurance companies recognize the fact that you may have reason to let someone who is not on the policy drive the car for a short period of time. Most companies will honor a claim filed on the car even if the driver was not listed on the policy, so long as the person who was driving the vehicle is a licensed driver.
Typically, you should notify the insurance company when the car is being loaned to someone else. By contacting the insurance company in advance, you are satisfying the requirements of the insurer, and the coverage on your car will be extended to the person who borrows your car. When you call your insurance company, you will be asked if this is an isolated event or whether the person will be borrowing your car on a regular basis. If they will be driving regularly, the insurance company will want you to add them to your policy, but if the loan is only for a short time, such as loaning out a truck to a friend who is moving, then the insurance company will not make any changes to your policy.
Since it does not make much sense to call your insurance company because a friend is making a quick trip to the store for you, there are procedures in place to handle such a circumstance. If the person is involved in an accident while driving the car, simply contact your insurance company, notify them of the accident, and give them the pertinent information regarding the person who was driving when the accident occurred.
Never let an unlicensed driver use your car. If that happens, the insurance company will not honor the claim if they get into an accident. Furthermore, allowing someone without a driver license to operate your vehicle could result in having your auto insurance canceled. Since driving without a license is against the law, allowing an unlicensed driver to use your vehicle could also result in your being impounded and could leave you liable for damages or subject to civil or criminal lawsuits related to the accident.
Answered January 14, 2013 by Anonymous