"My friend wants to borrow my car."
We often have inquiries about whether this is a good idea and if car insurance will cover the driver and vehicle should anything unfortunate happen. Read on to figure out whether you should hand over your keys.
For the Lender
The requirements for lending a car include that that as the owner you have given permission for its use. You cannot be lending the car on a regular basis, such as lending it each week to pick up groceries. If this is your situation, then you need to list the driver as an occasional driver, contact your Insurance Professional to be added onto the policy.
For the Borrower
The requirements for borrowing a car include that that you have permission from the owner to use the car. You cannot be borrowing the car on a regular basis, such as lending it each week to pick up groceries. If this is your situation, then you need to list the driver as an occasional driver, contact your Insurance Professional to be added onto the policy.
Follow the Rules
Drivers must have a valid, in force, license to drive, and be qualified to drive that particular vehicle. If you do have an accident with a borrowed car, then it can affect the car insurance record of the owner of the vehicle.
Before lending your car, make sure you know the rules and consequences. The primary insurer of the borrowed vehicle will pay the claim in the event of an accident. Figure out whether the pros outweigh the cons before saying yes.
