The Hidden Risks of Letting Friends Borrow Your Car

It might seem harmless to lend your car to a friend for a quick errand, but doing so could expose you to unexpected insurance and liability issues. In Novato, CA, the car, not the driver, is typically what insurance follows. So if your friend gets into an accident while driving your vehicle, your policy may be the one that foots the bill.

Insurance Usually Follows the Vehicle

In most cases, auto insurance follows the car, not the person driving it. If your friend causes a collision while borrowing your vehicle, your insurance will likely be considered the primary coverage. That could include:

• Collision and comprehensive coverage—If applicable, your policy may pay for repairs to your vehicle, minus the deductible.

• Liability coverage—If your friend is at fault, your liability coverage may pay for damage to others’ property or injuries up to your policy limits.

• Out-of-pocket expenses—If damages exceed your policy limits, you might be personally responsible for the difference.

What If They Have Their Own Insurance?

Even if your friend has a personal auto policy, theirs usually kicks in only after your coverage is exhausted. This means you could still face increased premiums, a deductible payment, and the long-term cost of a claim on your record.

In some cases, insurers may even deny coverage if the driver wasn’t listed on your policy or if the situation violated the terms of your agreement.

When “Doing a Favor” Turns Risky

While helping out a friend might feel like the right thing to do, it’s worth weighing the risks. This is especially true in Novato, CA, where winding roads and busy commutes can lead to higher accident potential.

If you do decide to lend your vehicle, make sure the driver has a valid license and that you trust their driving habits. Also, consider calling your insurance provider to ask how occasional drivers are treated under your policy.

Need help understanding your coverage? Reach out to an agent today to review your auto policy and make sure you’re protected, no matter who’s behind the wheel.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.