With a standard car insurance policy, is the car covered or driver ? if i loan my car out, is it covered ?

Question

With a standard car insurance policy, is the car covered or driver ? if i loan my car out, is it covered ?

Answer 1

Well, that's a loaded question!  See, the "standard" is a bit different in each state.  AND, your "standard" policy might be on a specia form, that says something different.

In general, though, for the most part - if you loan your car to someone, that car is covered, AS LONG AS the person doesn't live in your household, and doesn't have regular use of the car.  Regular is usually defined as more than once a month, or more than ten times a year.

At the same time, the INSURED PERSON, is covered, for any private passenger car they drive,  EXCEPT, any owned vehicles that are not listed on the policy, or any vehicles owned or furnished for regular use, to a household member, that are not listed on that policy.

Hope that helps, but I really hope you talk to your agent to get an accurate answer for YOUR policy.

Answer 2

In general --- insurance follows the car. So if you loan your car out, your insurance is primary.  That means, if the driver wrecks....your insurance pays for it.  It also means, that if the driver causes a wreck, you (as the owner of the car) and the driver will both be sued by the other party.

Any insurance the driver has is excess over your policy. That means, if the injuries are so bad that your policy does not provide enough coverage -- then the drivers policy kicks in.

This is very general info. Your agent can tell you more about your specific policy and state law.

Answer 3

The owner of the car and the policy is covered, along with listed drivers.  Claims are made against people not cars.

If you want some more information, I would check out...

http://insurance.123thebest.info/

Take care.

Answer 4

im in california and this is how it works,

Liability is the minimum that is required by law.  This covers for people and damges you cause to others.

Lets say if you are involved in an accident that is your fault, your insurance company will pay damages to the vehicle you hit.  Depending on your limits.  Here the min. is 15,000/30,000/5,000. it works this way, up to $15,000 in medical expenses for one person injured in the vehicle you hit, up to $30,000 in medical expenses total per occurence and covers up to $5,000 in property damages you may have caused. with most companies you can raise the limits of pay outs.

So YOUR car isnt covered at all neither are YOU and much less if you loan your car to some one, that driver is not covered.  Some companies WILL cover the damages done to other vehicles if a person driving is not on your policy, some companies WON'T.

If you want coverage for your VEHICLE ask for comprehensive and collision.  This will cover your vehicle from certain perils.  Ask your insurance company which ones.

So if you are involved in an accident and they hit you, then that person who hit you, there insurance company is responsible for paying the damages done to you.  If the person does not have insurance then you should get, Uninsured Motorist coverage.  Which basically covers your medical expenses and property damages if you are involved in an accident with someone who does not have insurance.

Answer 5

Car is covered.

Try this one - http://carinsurance.yoll.net - I personally have their car insurance, cause it is the cheapest for my family in our area and have good coverage.

Answer 6

In TX through Farmers if you loan out your car, the car is covered but if there is an accident and the driver is not listed on your policy you will suffer the consequences for it.  The accident will go on your record for 3 years and affect your insurance premium.  We do allow 1 "permissive use" accident every 3 years but it will make your insurance go up.

Answer 7

Your question could not be answered in one word.find useful tips here.http://car-insurance.online-tips.info/ca...

Answer 8

This is a loaded question! Well, in California liability is the minimum that is required by law. This covers for people and damages you cause to others. But this may differ for your region. So consult with one of your leading auto insurance company.

http://www.rghins.com/