Generally, insurance coverage "follows the vehicle."

Generally, insurance coverage "follows the vehicle." As long as a driver has the vehicle owner's permission to use it, the owner's policy will provide coverage no matter who the driver is. Whether you're lending or borrowing a car, the vehicle owner's policy should cover injuries and property damages. Exceptions do exist, so review your policy for its exact terms.

Primary Coverage by Owner's Policy

Another person driving your car should be covered under your policy as long as he was driving with your permission. If you have an accident in a borrowed car, the owner's insurance should apply first toward damages as long as you had permission to drive.
 The owner's insurance is the primary insurance. This means it will cover the owner's car and damages caused by it while operated with the owner's permission. If a person other than the owner is driving, the driver's insurance could provide secondary coverage if the owner lacked insurance or didn't fully cover the damages.

Uninsured Motorists

A car owner's uninsured motorist coverage is typically the primary coverage when a borrowed car is in an accident with an uninsured driver. As the driver of a borrowed vehicle, your insurance provides secondary coverage. You and the car owner will want to notify both your insurance companies.

Permission to Drive

If you give permission to someone to drive your car, he'll be covered by your insurance policy. Also covered under your policy are members of your household who drive your car, with or without your permission. Permission to use a car includes situations where the driver has a reasonable belief that the owner would give permission to use the car. For example, a friend who regularly borrows your minivan to move large items. Permission must be given by you, as the owner, and not by a friend or relative of the owner. Insurance coverage won't apply if your teenager gives his friend permission to drive your sports car.

Steps to Follow if You Drive Someone Else's Vehicle:

  • Make sure you have permission from the owner of the vehicle
  • Make sure they have insurance coverage on the vehicle that you are going to drive
  • Check to see if your insurance will cover any damage that isn't covered under the owner's policy
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