Before you decide to loan your car to a friend, you should stop and consider what might happen if they got into an accident. In most cases, car insurance follows the vehicle, not the driver.
This means that even if your friend has car insurance, you would be held responsible for their accident under your own policy. This could translate to out-of-pocket payments and increased insurance rates.
Keep reading to learn more about your options for safely loaning your car to a friend.
One-Time Borrowing
If your friend only borrows your car once, or only on occasion, they’ll likely be covered under your policy. Just keep in mind that if they get in an accident and your insurance doesn’t cover all of the associated costs, you’ll be liable for paying the difference.
Keep in mind that certain insurance policies will not cover any drivers who are not explicitly listed on your plan. It’s best to call your auto insurance company and ask them about your driver coverage before lending out your vehicle.
Regular Borrowing
Most auto policies require that anyone who regularly borrows your car be listed on your policy. This includes family members, spouses, friends, and anyone else who regularly drives your car.
Adding another driver to your policy will usually increase your rate. However, doing so will ensure you’re protected in case your car is in an accident.
Borrowing Without Your Permission
If a friend, or even a relative, takes your car without your permission, you can still be held liable if they’re in an accident. You may be able to argue that the car was taken without permission, but this process can be lengthy and complicated.
The easier route is to set clear boundaries for when your family and friends are allowed to borrow your car. While it may not seem like a big deal to let a friend drive your vehicle, you should always think about the lasting financial consequences before handing over your keys.
Find Affordable Car Insurance in Joliet, IL
If you’re looking for affordable car insurance coverage in Illinois, turn to the auto experts at Accurate Auto Insurance. We provide affordable insurance rates to all types of drivers, including those requiring SR-22 insurance. We’re the best choice for auto insurance in Joliet and the surrounding areas.
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