Are You Covered If A Friend Crashes Your Vehicle?
If someone hits your car, your auto insurance coverage - or, that of the at-fault driver - provides compensation for damages and injuries.
If your vehicle is stolen, your comprehensive coverage will cover the loss.
If you're found to be at-fault for an accident, and legally liable for property damage and injuries to others, your third-party liability coverage will take effect.
These details are relatively clear.
But what happens when you lend your car to a friend or relative, and that person gets into a collision? Are the damages covered, and if so, by whom? Can you be held liable for injuries to other parties, even if you were absent from your vehicle at the time of the accident? We'll address these and other important issues about auto insurance below.
Key Factors Considered By Auto Insurers Your insurer may agree to cover damages and injuries resulting from an accident caused by a friend using your vehicle.
Before they do, however, certain conditions must apply.
First, your insurance company will want to know how often your friend (or relative) uses your car.
If she borrows it several times a week, your insurer will expect her to be listed on your policy.
Otherwise, they may be unwilling to extend coverage.
If your friend uses your car once a month, she may not need to be listed.
Second, the length of time you lend your vehicle to another person also plays a role.
Is your friend borrowing it for a quick trip to the grocery store, or to take a 3-week road trip? If the former is true, your insurance company is unlikely to consider her a regular driver.
The latter case suggests she'll have complete control of your car for several weeks, and thus should be placed on your policy.
A third consideration is whether you have given your permission for use of your vehicle.
Suppose your friend borrows it without your consent, and crashes into another driver.
Here, your collision coverage will pay for damages to your car.
But damage to others' property, as well as injuries sustained by your friend and other drivers and pedestrians, are unlikely to be covered by your insurer.
As a side note, if someone living in your home has access to your car, consider listing that person on your policy.
He or she can "borrow" it without your permission.
Unless your insurance company allows you to exclude people from your policy, it's safer to list them.
Also noteworthy, in cases where your insurer covers damages and injuries stemming from a collision caused by your friend, your premiums are likely to increase.
Keep this in mind the next time someone asks to borrow your vehicle.
When Your Vehicle Is Stolen It's worth highlighting how your car insurance company views auto theft and accidents caused by thieves.
Are you liable for damages and injuries? Simply put, no.
Coverage here works in the same manner as it does when a friend borrows your car without your consent.
Collision or comprehensive coverage will compensate you for damages sustained by your vehicle, or its loss in the event it is totaled.
When A Friend Drives Your Car While Drunk Suppose you lend your car to a friend who's blood alcohol concentration (BAC) is higher than the legal limit (i.
e.
0.
08 mg).
Her driving ability is impaired, and predictably, she causes an accident.
Are damages to your vehicle covered by your insurer? Will your insurance company pay for the damages and injuries incurred by others? In this scenario, because you allowed your friend to borrow your car while she was impaired, your insurer will treat the situation as if you were driving while impaired.
They are unlikely to pay to repair your vehicle, even if you carry collision coverage.
Your third-party liability coverage may also be considered invalid.
This means you could be legally required to pay for damages and injuries if you are found liable.
Lending your vehicle to someone is an act of faith and goodwill.
But realize that doing so may cause problems if that person gets into an accident.
Check with your auto insurance company to learn how they address these issues.
If your vehicle is stolen, your comprehensive coverage will cover the loss.
If you're found to be at-fault for an accident, and legally liable for property damage and injuries to others, your third-party liability coverage will take effect.
These details are relatively clear.
But what happens when you lend your car to a friend or relative, and that person gets into a collision? Are the damages covered, and if so, by whom? Can you be held liable for injuries to other parties, even if you were absent from your vehicle at the time of the accident? We'll address these and other important issues about auto insurance below.
Key Factors Considered By Auto Insurers Your insurer may agree to cover damages and injuries resulting from an accident caused by a friend using your vehicle.
Before they do, however, certain conditions must apply.
First, your insurance company will want to know how often your friend (or relative) uses your car.
If she borrows it several times a week, your insurer will expect her to be listed on your policy.
Otherwise, they may be unwilling to extend coverage.
If your friend uses your car once a month, she may not need to be listed.
Second, the length of time you lend your vehicle to another person also plays a role.
Is your friend borrowing it for a quick trip to the grocery store, or to take a 3-week road trip? If the former is true, your insurance company is unlikely to consider her a regular driver.
The latter case suggests she'll have complete control of your car for several weeks, and thus should be placed on your policy.
A third consideration is whether you have given your permission for use of your vehicle.
Suppose your friend borrows it without your consent, and crashes into another driver.
Here, your collision coverage will pay for damages to your car.
But damage to others' property, as well as injuries sustained by your friend and other drivers and pedestrians, are unlikely to be covered by your insurer.
As a side note, if someone living in your home has access to your car, consider listing that person on your policy.
He or she can "borrow" it without your permission.
Unless your insurance company allows you to exclude people from your policy, it's safer to list them.
Also noteworthy, in cases where your insurer covers damages and injuries stemming from a collision caused by your friend, your premiums are likely to increase.
Keep this in mind the next time someone asks to borrow your vehicle.
When Your Vehicle Is Stolen It's worth highlighting how your car insurance company views auto theft and accidents caused by thieves.
Are you liable for damages and injuries? Simply put, no.
Coverage here works in the same manner as it does when a friend borrows your car without your consent.
Collision or comprehensive coverage will compensate you for damages sustained by your vehicle, or its loss in the event it is totaled.
When A Friend Drives Your Car While Drunk Suppose you lend your car to a friend who's blood alcohol concentration (BAC) is higher than the legal limit (i.
e.
0.
08 mg).
Her driving ability is impaired, and predictably, she causes an accident.
Are damages to your vehicle covered by your insurer? Will your insurance company pay for the damages and injuries incurred by others? In this scenario, because you allowed your friend to borrow your car while she was impaired, your insurer will treat the situation as if you were driving while impaired.
They are unlikely to pay to repair your vehicle, even if you carry collision coverage.
Your third-party liability coverage may also be considered invalid.
This means you could be legally required to pay for damages and injuries if you are found liable.
Lending your vehicle to someone is an act of faith and goodwill.
But realize that doing so may cause problems if that person gets into an accident.
Check with your auto insurance company to learn how they address these issues.
