If I Lend my Car to a Friend, Who Covers any Accident?

Ever lend your car to a friend?  Most of us have done it before, when a friend is moving, or hauling something, or just in a bind.  What if they’re in an accident while driving your vehicle?  Whose insurance covers that? 

The answer may surprise you. 

Your auto insurance policy would typically have to pay.  The accident would go against your insurance rating.  Dave Freeman, VP and regional underwriting office at Erie Insurance asserts us that, “by far, the number one misconception about loaning out your vehicle is that if you let your neighbor borrow your car, an accident should go on his insurance because he was the one driving.  But in private passenger auto insurance, the coverage typically follow the vehicle, not the driver.”

Wait, what if your friend was found at fault?  It can affect your policy.

Will your insurance pay?  It depends on your policy, and on whether you gave your permission for the friend to drive the car.  Now might be a good time to check your policy – read up and see what coverage you have.  Looking for new options?  Check out pro-insurance-finder.com.