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Lent my car to an insured friend... he got into an accident. He has car insurance, my car is fully insured(me)?

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Lent my car to an insured friend... he got into an accident. He has car insurance, my car is fully insured(me)?

Postby ealahweemah » Sun Jul 07, 2013 6:32 pm

So to keep things short, I let my friend borrow my car since he needed a car and he's always been supportive and helpful to me and my family. He practically lives 3 hours away from my place and I havent seen him or my car in 4 months or so, but I've always trusted him. Anyhow, I got a call today from my auto insurance company stating that there was an incident involving my car and that the party involved had his attorney file a claim with my insurance company. I was not aware of this, so I contacted my friend and he told me that he had been involved in a "clip" accident and that police had been contacted but since there were no injuries and/or blocked vehicles, dispatch informed my friend and the other driver to simply exchange insurance information.
My friend informed me that he has auto insurance (is that possible?! The car is under my name. Can you get car insurance for any car you drive?!) and that he contacted his insurance company to take care of the matter.
Does anyone know what's going on? I've never been involved in an accident and this is just confusing. I've lost sleep over this because I don't know who has to take care of this; my insurance or my friend's insurance company?!

Any help will be highly appreciated...
ealahweemah
 
Posts: 478
Joined: Sat Apr 02, 2011 9:28 am

Lent my car to an insured friend... he got into an accident. He has car insurance, my car is fully insured(me)?

Postby bohdan » Sun Jul 07, 2013 6:37 pm

Contrary to popular belief, in case of an accident, car insurance follows the car — not the driver. So if you lend your car to a friend, you could be liable if an accident occurs.

Even if your friend has great coverage with the highest limits and the lowest deductibles, your car insurance would have to cover the damages if your friend got into an accident while driving your car.
Car insurance follows the CAR.

If you're thinking of letting someone drive your car for a few hours, days, or weeks, keep in mind that you're not only lending your car, you're also lending your car insurance. In most states, comprehensive and collision coverage protects your vehicle regardless of who's driving it.

Though state laws vary, here's how car insurance coverage breaks down in the event of an accident:

- If you give any non-excluded driver (that is, someone you don't explicitly exclude on your policy) permission to take the wheel, your car insurance takes primary coverage status, which means that your car insurance would be primarily liable if something happens. The permitted driver's own insurance would serve as secondary coverage. So, for instance, if you loan your car to your best friend Drew and he causes an accident, you'll have to file a claim with your insurer, pay the deductible, and possibly expect a rate increase.

- If Drew has car insurance, he might be responsible for any personal liability and medical expenses. Additionally, his coverage might have to step in if the limits of your policy have already been reached.

- If Drew gets into an accident and he isn't at fault, you won't have to worry about your insurance taking a hit. Generally, you can file a claim with the at-fault party's insurance, skip paying the deductible, and get coverage for any damages to your vehicle.
- If Drew happens to be an uninsured driver and causes an accident, you could be liable for all of the damages. For example, if your uninsured friend causes a 3-car pileup that exceeds your car insurance limits, the injured parties could sue you to pay for medical fees and property damages.

PERMISSIVE USE:

Due to a provision in your car insurance policy called an "omnibus clause," your insurance will cover any driver, family member who lives with you, and even your dependent children away at school, so long as they have your permission to drive your vehicle.

Note that in some states, permissive drivers will have reduced coverage while operating your vehicle.
Non-permissive use

If your car's taken without your consent, you won't be held accountable for any damages. For instance, if a thief takes your car for a joyride and crashes it into a parked BMW 740i, you won't be liable for any damage to the BMW. However, you'll most likely have to use your insurance to cover any damages to your vehicle.

On the other hand, if a friend borrows your car without your permission and causes an accident, your friend's insurance will probably be considered primary coverage and yours secondary.

If your friend doesn't have insurance, you're out of luck. In most circumstances, you'll have to use your own car insurance to cover the accident.

One thing to note: unless it's clear that you expressly deny permission, most car insurance companies will usually assume that your friend, visiting relative, or family member residing with you has your permission to drive your vehicle. So, if an accident were to occur, chances are you'll still be liable for damages, even if you didn't personally or verbally hand over the keys.

GOOD LUCK!
bohdan
 
Posts: 468
Joined: Fri Apr 01, 2011 11:27 pm

Lent my car to an insured friend... he got into an accident. He has car insurance, my car is fully insured(me)?

Postby roibin » Sun Jul 07, 2013 6:42 pm

Yes. I know what is going on. When you lend your car, you are also automatically lending your insurance. The other guys own car insurance will not cover until/unless your insurance covers first and exceeds your limits. If/when your insurance limits are exceeded, then and only then will his coverage kick in. Your insurance is **primary**. His is only **secondary**. .
You need to be speaking with and seeking advice from your own insurance company instead of asking here on Y/A

"neither a lender nor a borrower be....."
roibin
 
Posts: 176
Joined: Tue Oct 30, 2012 12:20 am

Lent my car to an insured friend... he got into an accident. He has car insurance, my car is fully insured(me)?

Postby adalberto » Sun Jul 07, 2013 6:48 pm

A five minute phone call to your insurance company will tell you everything you want to know. Not all companies work the same. Another thing, loaning a car isn't a good idea and especially if he has had it for 4 months. He's taking advantage of your generosity. Then he didn't even have the decency to notify you of the accident. Get the car back before you end up in in a big lawsuit some day..
adalberto
 
Posts: 464
Joined: Fri Apr 01, 2011 11:52 am

Lent my car to an insured friend... he got into an accident. He has car insurance, my car is fully insured(me)?

Postby adhamhnan » Sun Jul 07, 2013 6:51 pm

Your car, so your insurance covers it. Your friend cannot insure a car owned by you.
adhamhnan
 
Posts: 101
Joined: Mon Mar 11, 2013 9:06 am

Lent my car to an insured friend... he got into an accident. He has car insurance, my car is fully insured(me)?

Postby yehoash » Sun Jul 07, 2013 6:52 pm

your covered because happened to my sister n friend and all went well
yehoash
 
Posts: 456
Joined: Thu Mar 31, 2011 5:02 pm


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