Lending Someone Your Car? Here’s What You Should Know.
At some point, many of us have been asked to lend a car or truck to someone. It may be because they are moving, have their own car in the shop or simply don’t own a vehicle. Lending someone your car is a bit like lending them money. You had better be clear on responsibilities and expectations. Here are some factors about lending your car to a friend or family member you should know.
Gas and Repairs
It is not beyond reason to ask someone to replace any fuel in a car you are lending. But what if they have a flat tire or experience some other mechanical issues? It is best to at least talk about this in advance.
Car Insurance
The main issue is making sure auto insurance will cover your vehicle when it is loaned for an occasional use. You will likely be held responsible for property damage or injuries if a friend who borrows your car is involved in an accident. Most automobile insurance policies will cover a friend or family member when using a car once in a while. The problem is if use becomes regular or if the person lives in your home. If a person you lend a car to lives with you, they may be required to be listed on your auto insurance policy. This may be true even if it is a roommate. The same may be true for anyone who uses your vehicle regularly.
It Is Understandable If You Don’t Want to Loan Your Car
If you loan out your car and it is involved in an accident, you will likely be held responsible. This is why it is completely understandable if you are hesitant to do so. If you are uncomfortable about lending your car to someone, explain logically and firmly that you just are not comfortable with the risk. There may be other alternatives including ride sharing or a rental that may solve their issue.
If you have questions about automobile insurance or would like to get a quote, we invite you to talk to one of our independent insurance agents. They can compare policies and prices from a variety of companies to find your best option. Contact us today.
