Your auto insurance policy (or that of the at-fault driver) covers you for injuries and damages if someone hits your vehicle. Your comprehensive coverage will protect your vehicle if it is stolen. Your third-party liability coverage will be in effect if you are found legally responsible for injuries and property damage to others.
These details are fairly clear. What happens if you loan your car to a relative or friend and they get into a collision with your car? Is the damage covered? If so, by who? Are you liable for injuries sustained by other people even though you were not in your vehicle at the time? These and other important questions about auto insurance will be addressed below.
The Auto Insurers Considered Key Factors
Your insurance may cover injuries and damages if your friend causes an accident with your vehicle. However, there are some conditions that must be met before they will agree to cover you. Your insurance company will first want to know how frequently your friend (or relative), uses your car. Your insurer will require her to be on your policy if she borrows your car more than once per week. They may not be able to extend coverage if they don’t. Your friend may not be required to be listed if she uses your car only once per month.
The second factor is the time that you lend your vehicle out to someone else. Do you borrow it from a friend to go to the grocery or for a three-week trip? Your insurance company will not consider her a regular driver if the latter is true. If she is the latter, it means that she will have full control over your car for several weeks and should be added to your policy.
The third thing to consider is whether you have given permission for your friend to use your vehicle. Let’s say your friend borrows your car and it crashes into another driver. Your collision coverage will cover damages to your vehicle. Your insurer will not cover damage to other property or injuries caused by pedestrians or drivers by friends.
Side note: If someone lives in your home and has access to your vehicle, you might want to list them on your policy. Without your consent, he or she can “borrow it”. It’s safer to list people unless your insurance company allows them to be excluded from your policy.
Notable is the fact that your premiums will increase if your insurance covers injuries and damages caused by a friend. This is something to keep in mind when someone asks you to borrow your car.
How to get your vehicle back
It is worth noting how your auto insurance company views theft and other accidents caused by thieves. Is your car insurance company liable for injuries and damages? The simple answer is no. This coverage works the same way as when your friend borrows your vehicle without your consent. Comprehensive or collision coverage will cover you for any damages to your vehicle or loss of it in the event that it is totaled.
If a friend drives your car while you are drunk
Let’s say you loan your car to someone who has a blood alcohol content (BAC) that is higher than the legal limit. 0.08 mg). She is unable to drive and causes accidents. Is your insurance company responsible for any damages to your vehicle? Your insurance company will pay for injuries and damages caused by others.
Your insurer will treat this situation as if your friend was driving under the influence. Even if you have collision coverage, they are unlikely to pay for your vehicle’s repair. Third-party liability coverage could also be invalid. If you are found responsible, you may be legally liable for injuries and damages.
