Lending a Vehicle to a Friend or Relative

 

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Your friend’s car is in the shop getting inspected and he needs a car for the day. Knowing he is a safe driver you lend him your vehicle. Later that morning you get a phone call. It’s your friend calling to let you know he was in an accident with another vehicle. Your heart starts racing and a million thoughts go through your mind.

Drivers Covered Under My Insurance

Many drivers are not positive who would be covered under their auto insurance policy. Drivers covered would include:

  • Anyone living in your household, unless expressly excluded
  • Anyone whom you have given permission to drive your vehicle

Many people think that car insurance follows the driver when actually car insurance follows the vehicle. Your own policy would be the primary coverage should an accident  occur.

Exceptions

Not everyone who drives your car is covered. As mentioned earlier, any driver that you have expressly excluded from your policy will obviously not have coverage. So it is important two think twice about excluding those who live in your home. Other situations not covered would include:

  • Theft
  • Non-permissive use: If you did not give your friend permission to drive your vehicle.

Liability

If your friend takes your vehicle without permission and is uninsured, your insurance will have to pay. You can also be held liable and possibly be sued for damages if:

  • You let an intoxicated/ impaired driver operate your vehicle
  • You allow an unlicensed driver to take your vehicle

Know your Insurance Coverage

It is important to know who and what is covered under your insurance. When you let someone else drive your vehicle remember that you will be the one filing the claim, paying the deductible, and accepting any rate increases. Never lend your car to someone you do not trust! Situations can vary and it is important to talk with a licensed agent before making decisions. If you have any questions and would like to speak with a knowledgeable agent contact Barrick Insurance at (717) 632-7270.

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Lending a Vehicle to a Friend or Relative