People often wonder about lending cars to people and how this affects potential insurance situations in the event of an accident. The truth is there is no easy way to answer this, as it is entirely based on a policy-by-policy basis.
Because there are so many different types of car insurance policies, the different levels of coverage and different rules about lending your car out can vary widely depending on the individual structure of a policy. That being said, it is almost universally true that there are a great many situations where a borrowed car will be covered by insurance and there are also many situations where it will not be covered. It is always a good idea to get in touch with your car insurer to find out what the exact rules for your policy when it comes to this issue are, that way you can know before you let a friend behind the wheel.
There are some insurance situations where your insurance will pay for the necessary benefits, but the driver's insurance can also come into play. There are also situations where, if you do not have someone listed on your policy for the purpose of driving your car, then your insurance may not cover him or her and you may have to rely on any applicable insurance of the driver instead. This will also be different in states that have no-fault insurance, which can further complicate this kind of manner.
Understanding that there are many different specifics and details of policies and providers, the common rule should be that if you lend out your car and the person driving gets in an accident and they are injured or they injure someone else, you can always be held liable because the vehicle ultimately belongs to you. What this means is that you will be held responsible to pay for any medical or other damages incurred and the injured parties can take you to court for any fees that aren't covered by you or your insurance company.
Fault can also at times apply to the owner of a vehicle regardless of the driver of a car in an accident. In some circumstances, it can be said that when you lend out your car you are also lending out your car insurance. This means you are putting yourself at risk to have your rates raised or have your policy cancelled if something terrible happens. Regardless of who is driving, your insurance will find out about an incident and respond according to their practices and policies.
There are a few exceptions to consider when it comes to a borrowed vehicle that gets into a wreck. The first is the event of theft. If your car is stolen during a time when your friend has borrowed it, you are not held responsible for damages occurred during the theft. This same exception also applies if anyone takes your car without permission at any time and for any reason.
There is also an exception in most insurance policies for Valets, since valets at restaurants or hotels aren't immune to accidents. If you get your car back after dinner to find it damaged, you aren't liable. Instead, the valet service has its own insurance to cover damages. Talk to the valet management to get its insurance information so you can file a claim.
The best rule of thumb is to check with your insurance company and find out the rules for you and your car and your policy before you lend it out!
Because there are so many different types of car insurance policies, the different levels of coverage and different rules about lending your car out can vary widely depending on the individual structure of a policy. That being said, it is almost universally true that there are a great many situations where a borrowed car will be covered by insurance and there are also many situations where it will not be covered. It is always a good idea to get in touch with your car insurer to find out what the exact rules for your policy when it comes to this issue are, that way you can know before you let a friend behind the wheel.
There are some insurance situations where your insurance will pay for the necessary benefits, but the driver's insurance can also come into play. There are also situations where, if you do not have someone listed on your policy for the purpose of driving your car, then your insurance may not cover him or her and you may have to rely on any applicable insurance of the driver instead. This will also be different in states that have no-fault insurance, which can further complicate this kind of manner.
Understanding that there are many different specifics and details of policies and providers, the common rule should be that if you lend out your car and the person driving gets in an accident and they are injured or they injure someone else, you can always be held liable because the vehicle ultimately belongs to you. What this means is that you will be held responsible to pay for any medical or other damages incurred and the injured parties can take you to court for any fees that aren't covered by you or your insurance company.
Fault can also at times apply to the owner of a vehicle regardless of the driver of a car in an accident. In some circumstances, it can be said that when you lend out your car you are also lending out your car insurance. This means you are putting yourself at risk to have your rates raised or have your policy cancelled if something terrible happens. Regardless of who is driving, your insurance will find out about an incident and respond according to their practices and policies.
There are a few exceptions to consider when it comes to a borrowed vehicle that gets into a wreck. The first is the event of theft. If your car is stolen during a time when your friend has borrowed it, you are not held responsible for damages occurred during the theft. This same exception also applies if anyone takes your car without permission at any time and for any reason.
There is also an exception in most insurance policies for Valets, since valets at restaurants or hotels aren't immune to accidents. If you get your car back after dinner to find it damaged, you aren't liable. Instead, the valet service has its own insurance to cover damages. Talk to the valet management to get its insurance information so you can file a claim.
The best rule of thumb is to check with your insurance company and find out the rules for you and your car and your policy before you lend it out!
About the Author:
About the Author: Leigh Jackson is a writer and journalist for the Texas insurance industry. Jackson helps potential insurance buyers understand the complicated insurance industry and find cheap Texas car insurance policies and no credit check car insurance policies.
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