Before handing your keys over to a family member or friend when they ask to borrow your car, there are a few things you should consider. When you hand over your keys you are also handing over your insurance coverage. In the event that there is an accident, your insurance will cover the damages based on your coverage. This means that even though you weren’t at the wheel, your insurance premiums could go up.
You should also make sure that the person you are loaning your car to has a valid driver’s license. If they get into an accident and don’t have a valid license, your insurance company could choose not to cover the damages. You would be left with the responsibility to cover any damages that arise.
If the person borrowing your car gets any parking tickets or if the car gets impounded, it’s once again your responsibility to pay the tickets or the cost to get your car back from the impound lot.
If you regularly lend your car to someone, consider adding them to your insurance policy. Insurance policies are assessed based on the driver(s) of the car. If someone frequently drives your car, your insurance company could deny your claim if they get into an accident.
If you have any questions regarding your insurance policy or your coverage, contact us today!