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If a friend borrows my car and has an accident, does it go against my Car Insurance?

Car crash

Many people assume that the driver of the car would be responsible for the accident since they were the one driving and in control of avoiding or causing an accident. Unfortunately, this is not the case. The Insurance follows the vehicle, so the vehicle owner’s Insurance would be the Insurance Policy that would pay for the claim.

Insurance follows the vehicle because factors about the vehicle affect the rate, such as, year, make, model, safety features, market value, repair costs and potential damages.

Factors about the drivers listed on an Auto Insurance policy are also considered in rating a policy, but Car Insurance Policies have a permissive use condition, that states that anyone who you allow to drive your vehicle is covered by your policy.

BEWARE! Do not lend your car to a friend or family member if they live with you and are not listed on your policy. Even though Insurance Policies have a permissive use condition, most companies require you to list all licensed drivers in your household on your Auto Insurance Policy.

If the friend who had the accident lives with you and is NOT listed on your Auto Insurance Policy, that accident might not be covered at all, and you would be responsible for paying for the damage out of your own pocket! Yikes!

I hope you found this tip helpful. If you’d like us to review your Auto, Home or Business Insurance and provide you with a no-obligation quote, give us a call 585-663-2004.