Why You Should Understand Your Auto Insurance Coverage before Lending Your Car to a Friend

Why You Should Understand Your Auto Insurance Coverage before Lending Your Car to a Friend

Many people want to consider themselves generous; they lend to those who ask and allow friends and families to take great liberties. When it comes to your vehicle, what you should do as far as generosity is concerned is not limited to your own personal beliefs on the situation, but may be governed by the law. While the government does not dictate what licensed driver can drive your vehicle, it does state that drivers on the road must be covered by insurance.

What Exactly Does Your Car Insurance Cover When It Comes to Lending?

If you are someone prone to letting other people operate your vehicle, you may want to note whether not your policy covers that person. Your coverage might fall into one of these categories:

  • Only the policy holder is insured – the insured person can drive any car they are licensed to operate and the policy will cover them no matter what vehicle they are in.

  • Just your car is covered – if you attempt to drive someone else’s car, the policy will not protect you.

  • Your car insurance covers it all – the car, any car you drive, and anybody who drives your car.

What Will Happen If an Uninsured Friend Drives Your Car?

Even if you have car insurance for yourself, you may have to pay out of pocket if an uninsured driver is involved in an accident while operating your car. However, there is help available. Visit this website to learn more about car accident repair in Garner.

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