Will my auto insurance cover uninsured borrowers?

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Posted: Fri Feb 20, 2009 3:19 am Post subject: Will my auto insurance cover uninsured borrowers?

My friend has a drivers license but no car or insurance of their own. Will they be covered under my insurance if I give them permission to borrow my car? We both reside in Michigan. Thanks!

clar8299

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Posted: Fri Feb 20, 2009 8:29 am Post subject:

Unfortunately, the insurer would cover the borrower driving the car with your permission, but I'd like to challenge your intelligence by asking- ‘why do you want to lend someone the car, who isn't insured?' If the driver causes an accident you'd be held responsible for the damages and it'd affect all your future premium rates. Also, the insurer may decide not to renew your policy in the future. Therefore, just think twice before lending the car to someone uninsured. Thanks, Rupert

RupertWBradson

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Posted: Fri Feb 20, 2009 10:56 am Post subject:

At my part of the world most motor insurances products will cover any person you lend your car to provided that person has a genuine driver's license and also provided that the person used the car with your pension. What you'll have to do is to read your policy document to see whether this person could be covered or contact your insurers for further clarifications.

sesiahe

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Posted: Fri Feb 20, 2009 12:05 pm Post subject:

I agree 100% with Rypert here. There are so many reasons why you should not lend your car to an uninsured driver. Along with the reasons Rupert listed there also is the chance that the person you lent the car to could seriously injure someone beyond your policy limits and then you could be held responsible. It would not be a very good idea to lend the vehicle to anyone.

fireyone

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Posted: Fri Feb 20, 2009 11:40 pm Post subject:

I believe I have to disagree with Rupert here. Whether or not the "permissive user" has insurance or not is irrelevant. Whoever owns the car is the policy that would pay out damages. Having insurance does not make someone a better driver. Nor would the policy-holder's premium be affected by an accident that the policy-holder was not at fault for. And non-renewal is not even a factor in this situation. At least that is the policy of the company that I work for. Perhaps some of us should do a little research prior to spewing crap like that. And if your insurer WOULD penalize a policy-holder for the actions of a permissive user, perhaps you should find a new one (insurance company).

bombteck187

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Posted: Tue Apr 07, 2009 10:38 pm Post subject:

I called my broker to ask this question they answered "if you him your car, you're lending him your insurance.. just be aware: whatever happens will he has your car it's on your policy and affects you" _________________ Register Now to have your Insurance queries solved.