You might have heard your insurance agent say, “Insurance follows the car not the driver”. If your vehicle is insured, then someone borrowing your car with your permission would also be covered under your insurance policy. With that information, you may want to pause before letting anyone drive your vehicle. When you are trying to decide on letting someone borrow your car you more than likely are considering their personal driving habits and how much you trust them. But do you consider the impact it could have on your insurance if the borrower were involved in an accident in your vehicle?
Because insurance follows the car, your policy would act first in the event of an accident even if the borrower has their own insurance. Their insurance would not kick in until your limits were completely exhausted. Your policy is also the one that would take the rate increase that often comes with claim activity.
We don’t want to discourage you from being a good neighbor or exercising common safety practices. We all have had a friend move and need to borrow a truck or have taken a long road trip where the driving needed to be broken up into shifts. However, as insurance professionals we do need to make you aware that when you loan your car you are also loaning your insurance.