Typically, if an individual borrows a policyholder's vehicle, the coverage may transfer and cover losses that occur while in another person's possession with certain exceptions. First and foremost, the individual who is borrowing the automobile must have the permission of the insured to operate the vehicle or reasonable belief that they are entitled to do so.
In most cases, if a driver is permitted to operate an insured's vehicle, the policy of the covered auto will pay for damages caused by the motorist up to the limits on the policy. As an example, if the driver of a borrowed vehicle strikes the property of another party the damage may be paid by the insured's coverage up to the policy's limit as long as it was classified as an accident.
Car Insurance Aspects to Consider When Lending or Borrowing a Vehicle
It is always wise to fully understand auto insurance policies before lending or borrowing a vehicle. Certain companies abide by different underwriting guidelines and restrictions when it comes to operators who are not stated on the policy.
Before borrowing a vehicle, one should make sure that the vehicle in question is indeed insured. In just about every state it is illegal to drive without coverage or some type of Financial Responsibility. Being caught driving without a policy can result in tickets, fines and/or uncovered accidents that may affect both the automobile owner and the party who borrowed the vehicle.
In addition, prior to lending an automobile to an individual, it may be a good idea for the insured to call their provider before doing so; by contacting the carrier, one can clarify any questions which they may have in order to ensure that the person borrowing the vehicle will be covered under the stated on the policy. Calling an insurer can take only a few minutes and may be well worthwhile to avoid any future misfortunes.
If one is in need to borrow an automobile and is not covered by the policy of the owner of the vehicle, they may be able to purchase a "non-owner" policy to cover themselves while they drive another's vehicle. Whatever the case may be, it is always wise to ensure that protection is in place before getting behind the wheel.