16 May 2019
man handing over car key

Does your insurance protect you when you’re driving a borrowed car?

If you have your own insurance, then you might assume that your policy protects you even when you are driving someone else’s car.  However, this isn’t the case in most states.  Generally, auto insurance coverage follows the vehicle and not the driver.  So, while you will have coverage when driving a borrowed car, it’s the car owner’s coverage and not your own.

  • Lending Out Your Car

Because the car owner is financially responsible for the damages caused by their vehicle, it’s important that you know your coverage limits before you lend out your vehicle.  In some cases, your auto insurance policy may impose lower coverage limits when your car is being operated by a driver not listed on your policy.  In some cases, your insurance will not cover the other driver protection at all.  For instance, if you regularly lend your car out to someone who is not a member of your household, or if you are lending your car out for business purposes, then your auto policy might deny the driver coverage.

  • Adding a Driver to Your Policy

If you frequently lend your car to someone that you do not live with, then you should add this person onto your auto insurance policy as an additional insured.  You should also take this step if you are lending your car out for an extended period of time.  This way, you can ensure that the driver has the coverage that they need.

This is what you need to know about auto insurance on a borrowed car.  Do you have additional questions about your auto insurance in various situations?  If so, then contact the experts at Paterson & Associates in Richardson, Texas.  We are ready to assist you with all your coverage needs today.