Whether you’re home on vacation or visiting a friend, you can choose to use a family member’s or friend’s car to run an errand or take over driving duties. no big deal, you think. until you run for a quick coffee and back up and get into a car accident. As the coffee spills, you worry about the mess and wonder “do I need car insurance to borrow a car?” If you are the owner of the vehicle that allows someone else to drive, you will want to know if your insurance covers someone else to help you navigate this situation. Read on to learn what happens when someone borrows a car and the insurance protocols you need to be aware of.
Does insurance cover someone borrowing your car?
“Does insurance cover someone who borrows your car?” is a common question that people have. Whether you’re letting a friend borrow her car or borrowing a friend’s car, the general rule is that an auto insurance policy is associated with the car, not the driver.
so if a friend borrows your car, it’s likely covered under their insurance policy. It’s best to check with your insurance provider to see what and who is covered.
If you are not at fault, liability coverage may not be as helpful in an accident as collision coverage. If you’re curious about whether insurance covers someone borrowing your car or if you need car insurance to borrow a car, it’s best to go directly to the source, as policies vary by insurer and state.
Does my car insurance cover me while driving someone else’s vehicle?
If you borrow someone’s car, you’ll typically be covered by their auto insurance policy up to the limits of the policy they choose. this is what is known as “permissive use”.
So if you borrow a friend’s car and are wondering about insurance, your friend’s policy would be primarily responsible if you have an accident while driving your car, since car insurance usually follows the car and doesn’t to the driver.
It is important to note that this accounts for irregular and infrequent loans. For example, if you’re home on vacation, you’ll usually be covered when you’re driving your mother’s car. But if you’ve moved home for an extended period during the pandemic, your parents may need to add you to their insurance policy.
if someone who is not a metromile customer drives my car, is he covered?
metromile insurance follows your car. So if you’re worried about whether your insurance covers someone borrowing your car, with Metromile you do.
So if you’re a Metromile customer and you let your friend lend you your car, you’ll be covered if you have an accident, subject to the terms and conditions of the policy. Unfortunately, this also means that even if you have an impeccable driving record, your friend’s accident could increase your insurance costs in the future. Please note: Metromile is pay-per-mile auto insurance. you will have to pay for the miles they drive in their car.
what if I’m renting a car?
Your metromile insurance policy generally extends to rental cars. So if you’re renting a car for a trip and you’re in an accident, we may be able to help. But you should check your policy before you pull the car off the lot to make sure you understand your coverage and have the policy limits that fit your budget.
what about my mom’s, dad’s, brother’s or roommate’s car?
Usually, family members of driving age who live together must have the same insurance policy, so swapping cars is fine. if not, they should be formally excluded from the politics of others; More importantly, a driver is generally not covered by a policy from which he is excluded, which means that he should never lend his car to someone he has excluded.
Roommates who are not immediate family members may fall into a gray area; It’s a good idea to check with your insurance company about what’s allowed, but generally, you’ll want your roommate to be listed on your policy if they have regular access to your vehicle and occasionally drive it.
what is primary and secondary auto insurance coverage?
When claims get complicated, insurance companies spend time determining who is primarily responsible (i.e., responsible for paying damages) and second responsible, or activate only when primary coverage is exhausted.
If you give someone permission to drive your vehicle, your auto insurance generally takes primary coverage status. if the damage exceeds your coverage limits, the driver’s policy may take over as secondary.
Am I covered if I’m using a loaner car for business?
This is where things get tricky. Commercial policies cover some vehicles for business use, but it gets complicated when a car is borrowed or traded for an unusual use, or if a personal vehicle is used for a delivery or transportation service, such as a local laundromat. or an app-based service like amazon, doordash, lyft, or uber.
There are many pros and cons and exclusions when it comes to business use, so it pays to do your research before borrowing a car in a situation like this.
metromile provides personal auto insurance coverage for low mileage drivers and does not cover vehicles used for work, including food delivery, package delivery or ride sharing.
the end result
If you’re thinking “do I need car insurance to borrow a car?” Now you know that when you borrow a car, insurance coverage is based on the vehicle’s policy holder. therefore, if you borrow a car, it may be covered under the owner’s policy. If you let a friend borrow your car, it’s likely covered under your policy. contact your provider if you have specific questions about what is covered. Plus, you could pay less for auto insurance if you don’t drive your car often. You can see if Metromile is right for you with Ride Along™. download the metromile app to get started. After you get a free auto insurance quote, you’ll keep your current coverage and drive as you normally do for about two weeks. then metromile will show you how much you could save with an accurate rate based on your actual driving. Why pay more, when you can pay less to drive less? get your free quote.