Can you lend a car to a friend?

Someone with permissive use: If you loaned out your car to a friend or neighbor, your ERIE policy generally will cover them – as long as you gave your permission. If they are a regular and repeated user of the car, they should also have coverage. The only exception is if a driver has been specifically excluded on your policy.

What happens if a friend borrows your car and causes an accident?

A common myth is that if a friend borrowing your car has insurance, their policy covers any damage done to your car. That’s not the case. If a friend borrows your car and causes an accident, your insurance policy pays for any at-fault damages.

What happens if a friend takes your car?

If your car is taken by a friend or family member without your permission, you can claim that it was non-permissive use. Though it may be difficult to prove that you didn’t give permission, if someone takes your car and causes an auto accident, several events can occur:

What happens if I loan out my car to another driver?

In reality, car insurance follows the vehicle. This means that if you loan out your car to driver who is not excluded on your policy (see “When Could You Be Held Liable?” below), your car insurance is the primary coverage that would apply if a crash occurred. The driver’s insurance would act as secondary (or excess) insurance.

What happens if you loan your car to a friend?

Scenario No. 1: Your friend drives your car and causes an accident with minimal damage to your car only. In almost all situations, if you loan your car to a friend and he or she damages your car in an accident, your insurance will pay.

What kind of insurance do I need to lend my car to a friend?

(Related: What Insurance Do You Need When You Move in Together?) Someone with permissive use: If you loaned out your car to a friend or neighbor, your ERIE policy generally will cover them – as long as you gave your permission. If they are a regular and repeated user of the car, they should also have coverage.

Can you borrow someone else’s car to pick up milk?

“If it’s an occasional use, say I borrow your car to go pick up milk, and as long as permission has been verbally granted, you’ll typically be covered.” But, borrowing a car under other circumstances may not be as clear-cut. It depends on your insurer and your particular policy.

What happens if your friend drives your car without your permission?

Scenario No. 5: Your friend drives your car without your permission and crashes it. You’re not likely to be held accountable for the damages because your friend borrowed your vehicle without your knowledge. In this case, your friend’s insurance (assuming he or she has it) will kick in first.

Who is responsible for your car if your friend borrows it?

It’s your insurance policy that is responsible for your car when someone else driving it is involved in an accident. A common myth is that if your friend borrowing your car has insurance, then it’s your friend’s insurance policy that covers any damages. Not true.

What happens if I loan my car to someone else?

In short, you’d have to pay damages out of your own pocket. Insurance Limits. If the damages exceed the amount your insurance covers, then the insurance of the driver borrowing the vehicle MAY cover any remaining gaps— IF the other driver has insurance that covers a borrowed vehicle. Lending Your Car to a Dangerous Driver.

What do I need to know about loaning out a car?

Every state requires a minimum level of auto insurance coverage, and some stipulate that in case of an accident, the car owner’s auto insurance—not the driver’s—provides primary coverage. (So if the driver rear-ends someone or bumps another car in a parking lot and your insurance has lapsed, you could be liable for damages.)

What happens if you lend your car to a friend?

Generally speaking, auto insurance covers the car and any drivers named on the car’s insurance policy. That being said, if you lend your car to a friend and the friend has an accident, your insurance will cover damage to your vehicle the same way as if you’d been behind the wheel.