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UPDATED: Feb 26, 2017
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Insurance Question from Kemp, TX
Asked on 02/26/2017
coverage If I loan my vehicle to a friend who has no insurance but has a legal DL, if they have an accident in my vehicle will my insurance still cover?
Answer given on March 07, 2017
In most instances, when you lend your vehicle to a licensed friend, your insurance will cover any accident that occurs while they are driving. There are some insurance companies that only cover listed drivers on the policy, you need to check with your insurance company and/or review your policy to see if that restriction applies. If not, and there is an accident caused by the permissive driver, your insurance policy will pay for damages and injuries, up to the policy limits, for such injury or damage. If you have collision coverage on your car, your policy will pay for those damages, less your deductible. Your insurance rates should not be affected, but some insurance companies do surcharge if there is an accident, even if not your fault. Again, check with your agent or company about this.It is possible that your insurance company will ask for information on the other driver. Presuming the friend does not regularly borrow your car there should be no further issue. If they use the car regularly you may have to add them to your policy as a driver.
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