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I’m Borrowing My Friend’s Car … Am I Covered?

By February 14, 2019February 8th, 2022Auto claim

Most people have an idea of what’s covered and not covered under their various insurance policies. But do you know how insurance works when you or your child borrows or loans a car?

Generally, insurance coverage follows the vehicle rather than the driver. So in most instances, as long as the owner of the car has insurance, it’s covered even if someone other than the owner is driving it — as long as they have the owner’s permission.

The borrower’s insurance is considered secondary, meaning that in the event of an accident, it could apply if the owner’s insurance is insufficient to fully cover the damage.

It’s important to note that there are some exceptions to what is called “permissive use” coverage. For example, permission must be given by the owner, unless the borrower has a reasonable belief that they are allowed to use the car. However, the borrower cannot give permission to someone else. Therefore, if your teenager allows one of his or her friends to drive your car, your coverage likely won’t apply.

Coverage might also be denied if the borrower operates the vehicle in a negligent or criminal manner. And if the borrower is using your car for business purposes, your personal auto policy likely won’t cover that.

If you have a regular long-term arrangement to either borrow or lend a car, the borrower should probably be added to the owner’s personal auto policy. The borrower may also want to add the extended non-owned endorsement to his or her policy.  Those who don’t own a car but often borrow one might consider adding “named non-owner coverage,” an endorsement that provides bodily injury and property damage liability, uninsured motorists coverage and more.

Ultimately, it’s usually safe to loan your friend your car for occasional errands or projects. And the same goes for borrowing a car. Just make sure it’s for “normal” use. You’ll want to confirm that the car has coverage and that your insurance, whether you’re the owner or borrower, will apply.

Feel free to give us a call if you have any questions!

The Turner Agency, Inc. is a local Trusted Choice® independent insurance agency located in Greenville, South Carolina. Serving the Upstate of South Carolina and beyond since 1962, we offer a variety of personal and business coverage choices and can customize an insurance plan to meet your specialized needs for homes, automobiles, recreational vehicles, secondary homes, and your business. Contact The Turner Agency today.