Many people may loan out their car to a friend without a second thought. Both borrowing and loaning a car have different insurance implications in the event of an accident. By knowing how you could be affected, you will be able to determine if it's in your interests to borrow your friend's car.

Insurance Follows The Car

The basic rule when it comes to car insurance is that the insurance policy follows the car it insures, not the driver that holds the policy. So, if your friend is lending you a car they have insured under their name, their policy is the primary policy in the event of an accident. If you also have an insurance policy, and your friend's car is involved in an accident with you at the wheel, your friend's insurance is the one on the hook for that accident.

Your insurance policy is considered to be secondary. This means your policy will become liable if your friend's insurance policy couldn't cover the costs of the accident. In most cases, you would be liable for personal liability and medical damages. If your friend doesn't have insurance on their vehicle and you borrow it, your policy would become the first in line for any damages involved in an accident.

These insurance rules can lead to consequences for your friend's insurance policy. If you are at the wheel of their car and you cause an accident, your friend's insurance rates will go up. However, citations are different and affect the individual driver. So, if you get a ticket, your insurance rates would go up and not your friend's.

What Qualifies As Regular Use

Insurance policies usually include rules about who regularly use a vehicle. If you borrow your friend's car for a day once a month or so, their policy should cover you. However, if you have to borrow their car for several weeks, it may be time to call the insurance company. Once you start using a car regularly, it limits the coverage available to you under your friend's policy. If you would want to be fully covered, you should ask to be added to your friend's insurance policy. It's also important to note that different states have different rules governing their insurance policies, so it's best to contact your insurance company for further clarification.

Non-Owner Car Insurance

If you plan on borrowing your friend's car regularly, but you don't own one yourself, you may want to look into a non-owner car insurance policy. This is a type of policy you can get when you don't own a vehicle, but you still want to be protected in the event you drive or rent one. These policies don't tend to protect the vehicle itself but offer protection for property damage and bodily injury. 

For more information, contact D A Insurance Brokers or a similar company.