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WHAT HAPPENS WHEN I LOAN MY CAR TO SOMEONE?
What happens when I loan my car to someone? Is that person covered by my policy? Am I still covered?
Yes. Liability and coverage for physical damage (i.e., comprehensive and collision) always follow your car. So, if a friend borrows your car and has an accident, you're still protected against the cost of damages or injuries. Plus, if the driver of your car is insured, his or her policy will also be available to cover the cost of damages and injuries.
The same rules apply when you borrow someone else's vehicle-- your own insurance follows you no matter whose car you are driving. But the vehicle owner's policy is the key coverage if you have an accident.
« BACK
» Car insurance guide:
 Why do I need car insurance?
What are the different types of policies & what cover?
Why and how are policies priced for different drivers?
How does where I live affect my premium?
What is "no-fault" insurance?
Do all states require some kind of liability insurance?
Why would my insurer cancel my policy?
How do I keep my insurance company from canceling my policy?
What steps can I take to reduce my rates?
How does adding drivers to my policy affect my rates?
Who's watching the insurance companies?
Do I always need to buy insurance when I rent a car?
What happens when I loan my car to someone?
Am I covered for natural disasters or "Acts of God"?
What actually happens when I report an accident?
Do I need special insurance for a classic car?
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