Have you ever let a friend borrow your car? Chances are the answer is yes.
The situation probably made you feel a bit uneasy. What if my friend gets in an accident? What if my friend injures the other driver? What if passengers are involved, too? What if the roles were reversed and I crashed someone else’s car?
DOES CAR INSURANCE FOLLOW THE CAR OR DRIVER?
In most cases, car insurance follows the car. Your personal auto policy covers what is called Permissive Use. This means your coverage extends to anyone using your vehicle if they have permission to do so. If someone using your vehicle with permission gets into an accident, your policy will respond in the same way as if you had been driving:
- Liability covers injuries to people and damage to property when you or a permitted driver are at fault in an accident
- Collision and Comprehensive covers damage to your car in an accident and any other cause, like vandalism, theft, or falling objects. These two coverages pay out regardless of who is driving or responsible.
- Medical Payments pays for medical expenses for you or a permitted driver after an accident, in addition to passengers. Rural Mutual auto policies cover medical expenses up to three years after a crash.
WHAT IF LOSSES EXCEED MY COVERAGE LIMITS?
As long as the permitted person using your car isn’t an uninsured driver, their policy would cover any costs beyond your policy’s limits. In this case, it would be correct to say car insurance follows the car first, then the driver.
This works both ways. If you borrowed your friend’s car and crashed it, you’d be covered by the owner’s policy first, with your policy serving as secondary.
It’s best to be proactive and prepared in case the unexpected happens. If you have other questions about your car insurance, contact your local agent to learn more.
