In our opinion, just about every licensed driver at some point or another has wondered, “If I let my friend borrow my car, will their auto insurance cover them if they’re in a car accident?” In reference to this common question, a lot of people mistakenly believe that car insurance automatically follows the driver – this is a myth.
According to esurance, an Allstate company, “Contrary to popular belief, in case of an accident, car insurance follows the car – not the driver. So if you lend your car to a friend or a visiting relative, you could be liable if an accident occurs.”
“What if my friend has better coverage than me with higher limits?” Sorry, but as long as your friend was driving your vehicle, your auto insurance, not your friend’s, would be the one to pay for any damages your friend caused in the crash.
Car Insurance is Attached to the Car, Not the Driver
Suppose you want to loan your car to your roommate while their car is in the shop. Or, suppose your Dad is visiting from out-of-town, and you want to let him borrow your car while he stays at your place. Or, perhaps your friends want to borrow your truck on moving day. In all of these scenarios, remember that not only are you lending them your car, but you’re also loaning them your auto insurance.
This is basically how it works: If your friend is an accident and it’s their fault, your auto insurance will activate to pay for the damages. You will have to file the claim and pay the deductible. If the rates increase, that’s on you too. If your insurance is insufficient to pay all the damages, then your friend’s insurance would be used as “secondary coverage,” that is if your friend is insured. If they aren’t, you could be sued for the remaining damages.
If your friend is definitely not at fault for the accident, there’s nothing to worry about. In this scenario, you would file a claim against the at-fault driver’s insurance policy, which would cover your friend’s medical bills and any damages to your vehicle.
To file a car accident claim in Columbia, SC, contact our office today!