x

To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video

  • Get A Quote
  • Retrieve a Saved Quote
  • Manage Your Policy
  • Contact Us
CALL 855-MINIMO1
Good2Go Logo
CALL 855-MINIMO1 (855-646-4661)
  • Get A Quote
  • Retrieve a Saved Quote
  • Manage Your Policy
  • Contact Us
Good2Go Logo
Get A Quote
MENU
  • Home
  • Blog
  • Lending Out Your Vehicle

Lending Out Your Vehicle

By: Good2GoPublished: March 28, 2016

Many people think that car insurance follows the driver. Unfortunately this is not the case, as the car insurance follows the car. If you lend your car to a friend or relative, you could be liable if an accident occurs.

Even if the person driving your car has great coverage with the highest limits and lowest deductibles, an at-fault accident could result in an increase in your insurance premiums. Your car could be damaged to the point of being temporarily unusable. Even worse, it could be completely totaled, which does not necessarily mean you’ll get a brand new replacement car.

Rather, you’re more likely to get the significantly lower cash value of a used vehicle—minus your deductible, minus any remaining balance due on your car loan and payable to your auto loan holder.

Let’s use your buddy Sara as an example.

Scenario 1: Sara’s Fault

You lend your car to Sara. She causes an accident. You’ll have to file a claim with your insurer, pay the deductible, and possibly expect a rate increase. If Sara has car insurance, her provider will be responsible for medical expenses. Sara’s insurance may also be a backup if the limits of your insurance are reached.

Scenario 2: Not Sara’s Fault

If Sara gets into an accident and isn’t at fault, you won’t have to worry about your insurance taking a hit. You can file a claim with the other party’s insurance, skip paying the deductible, and get coverage for any damages to your vehicle.

Scenario 3: Sara is Uninsured   

If Sara is an uninsured driver and causes an accident, you could be liable for all of the damages. For example, if Sara causes a multi-car pileup that exceeds your car insurance limits, the injured parties could sue you to pay for medical fees and the costs to repair damages.

Ultimately, the safest decision is to not lend your car to anyone. If you do, you’ll want to make sure the person who borrows your car is properly licensed. You’re best off if your friend also has their own car insurance, so their carrier can pitch in or maybe entirely cover any damages incurred.

Whether or not you choose to loan your car out to friends and family members, you will need auto insurance that is reliable. At Good2Go, we can help you decide what level of protection is right for you and your car – no matter who is driving. Visit us online or call (877) 200-9912 to speak to an agent and get your free quote today.

Other Articles You Might Like

How to Parallel Park
The Dangers of Drowsy Driving

Categories

  • Accesories (3)
  • auto insurance (71)
  • Automotive Industry (8)
  • car insurance (12)
  • Car Sales (5)
  • Car Trouble (4)
  • Cars (15)
  • Distracted Driving (5)
  • Driving (19)
  • Family (6)
  • Finance (3)
  • Fun (13)
  • Future (4)
  • History (8)
  • Holiday (7)
  • maintenance (3)
  • Maintenance Tips (8)
  • Safety (16)
  • Seasonal (12)
  • Technology (4)
  • Traffic Laws (8)
  • Travel (12)
  • TV & Movies (5)
Follow Us
Start Your Free Quote
Please enter a valid 5 digit zip code.
Retrieve Saved Quote
Need
Help?
Call 855-MINIMO1 (855-646-4661) Our support team is available 24/7
Call 855-MINIMO1
Retrieve a Quote
  • Good2Go Auto Insurance
  • P.O. Box 105396 Atlanta, GA 30348
  • 855-MINIMO1
  • Home
  • Retrieve a Saved Quote
  • Car Insurance By State
  • Manage Your Policy
  • About Us
  • Testimonials
  • Driver Discounts
  • Car Insurance
  • Blog
  • Contact Us
  • News
  • Frequently Asked Questions
  • Terms of Use
  • Privacy Policy (all states)
  • Privacy Policy (Virginia)
Copyright © 2018 Good2Go Auto Insurance. All Rights Reserved.
Follow Us
  • Good2Go Auto Insurance
  • P.O. Box 105396 Atlanta, GA 30348
  • Car Insurance
  • About Us
  • Blog
  • Terms of Use
  • Privacy Policy (all states)
  • Privacy Policy (Virginia)
Copyright © 2018 Good2Go Auto Insurance. All Rights Reserved.