You let your best friend borrow your clothes, your kitchenware, and even your suitcases when he or she is going on a trip. So why not let him or her borrow your car? After all, what could go wrong?
The problem with loaning your car to a friend comes about when your friend is an accident. In all 50 states, drivers are required to have some type of insurance or protection that will cover the expenses of the injured party if they cause an accident. Most insurance policies are tied to a specific car and driver, however. That means that your insurance policy most likely will not cover another driver.
This means that if your friend is in an accident while driving your car, there will be no insurance coverage for him or her. All of the expenses associated with the accident will legally be the responsibility of the uninsured driver. In many states, however, the injured party is allowed to try to recoup their expenses from the owner of the car. This means that you could be held liable for your friend’s actions.
Because of this, many people assume that they will be protected as long as they carry their own insurance. While this is true for some policies, it is not the case with most basic or minimal coverage auto insurance policies. Comprehensive policies can offer some protection in these situations, but it is next to impossible to know how much insurance your friend has before loaning him or her your car.
If you need to increase your insurance coverage to give you additional protection from other drivers, then call the people at The Sanford Group. They have a wide range of auto policies that can give you protection if you decide to loan out your car.