Am I covered if someone borrows my car and gets into an accident?

Although your friend was driving, insurance follows the vehicle. Therefore, your vehicle’s personal auto insurance will help cover the damage to both vehicles. Subject to a deductible, your policy’s collision coverage will provide payment for the damages to your vehicle.
October 3, 2023 | Auto
By: Lisa D.
Lisa D. has almost 20 years of experience in the insurance industry, including over 15 years at Acuity. Before starting at Acuity, she obtained her P&C license and sold personal insurance. She keeps a pulse on industry trends while continuing to specialize in developing and updating personal auto insurance products. On top of that, Lisa has her Association in General Insurance (AINS) and Associate in Personal Insurance (API) designations. Outside of work, Lisa enjoys cooking, photography, and spending time with her family. The last two go hand in hand, as she takes pictures of her kids every day.

Author of Auto Focus

Your friend is in a pinch and asks to borrow your vehicle to pick up their kids from school. Generously, you hand them the keys. While waiting in the pickup line in the school parking lot, your friend becomes distracted and accidentally accelerates, bumping into the vehicle in front of them. Both bumpers are dented, and the other driver would like to be checked out by a doctor, as they have a sore neck. Are you covered?

 

What type of insurance do I need to cover this?

Although your friend was driving, insurance follows the vehicle. Therefore, your vehicle’s personal auto insurance will help cover the damage to both vehicles. Subject to a deductible, your policy’s collision coverage will provide payment for the damages to your vehicle. Your vehicle’s liability insurance will cover damages to the other party involved in the accident, even if you were not driving. There are two main types of liability coverage: property damage and bodily injury. Property damage liability coverage protects you in the event you or another driver are at fault for an accident while driving your insured vehicle and cause damage to another vehicle, structure, or piece of property. Bodily injury liability coverage will help cover another person’s medical bills if they are injured as a result of an accident caused by the operator of your vehicle.

 

What special endorsements do I need to help ensure this is covered?

Collision coverage is not a state-required coverage but having it on your auto policy is almost always a good idea to protect your vehicle from any type of collision, including a minor parking lot accident.

 

Liability coverage is required by law but limit requirements for both property damage and bodily injury can vary by state and any coverage amount above those limits is based on your needs. It’s important to understand what your liability limits are as property damage costs can add up quickly – especially in more serious accidents.

 

How do I check to make sure I have this coverage?

To make sure your vehicle has collision coverage and sufficient limits for property damage and bodily injury liability coverage, check the declarations page of your insurance policy or contact your independent agent today. 

By: Lisa D.
Lisa D. has almost 20 years of experience in the insurance industry, including over 15 years at Acuity. Before starting at Acuity, she obtained her P&C license and sold personal insurance. She keeps a pulse on industry trends while continuing to specialize in developing and updating personal auto insurance products. On top of that, Lisa has her Association in General Insurance (AINS) and Associate in Personal Insurance (API) designations. Outside of work, Lisa enjoys cooking, photography, and spending time with her family. The last two go hand in hand, as she takes pictures of her kids every day.

Author of Auto Focus