Borrowing a friend’s car or lending yours to a family member might seem simple, but when it comes to auto insurance, things can get a little complicated. Many drivers are unsure how coverage works in these situations, and understanding the basics can save you from unexpected headaches. Let’s break down how auto insurance applies when you’re behind the wheel of someone else’s car.
Does the Car’s Insurance Cover the Driver?
In most cases, auto insurance follows the car, not the driver. This means that if you borrow someone’s car and get into an accident, their insurance policy will typically cover the damages. However, this depends on the type of coverage they have and the circumstances of the accident. Williamson Insurance Agency can help you understand how these policies work and ensure you’re protected in Highland, MI.
What Happens If the Car Owner Doesn’t Have Enough Coverage?
If the car owner’s insurance policy doesn’t fully cover the damages, your own auto insurance may step in as secondary coverage. For example, if the accident results in medical bills or property damage that exceeds their liability limits, your policy could help cover the remaining costs. This is why it’s important to have adequate coverage on your own policy, even if you don’t drive often.
Are There Situations Where You’re Not Covered?
There are some scenarios where neither the car owner’s insurance nor your own policy will provide coverage. For instance, if you’re driving the car without permission or using it for business purposes, the claim may be denied. Always make sure you have explicit permission to use the vehicle and understand the terms of the owner’s policy.
Protect Yourself Before You Borrow or Lend
Whether you’re borrowing a car or lending yours to someone else, it’s important to know how auto insurance applies. Reviewing your policy and understanding the coverage limits can help you avoid surprises. Williamson Insurance Agency is here to help drivers in Highland, MI navigate their auto insurance needs. Learn more about our services here.
