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How-to: Decide if Someone Should Borrow Your Car

If you would like to learn more, check out this video about the risks of letting someone borrow your car.

We have all had it happen before. A friend or family member could be without a car for any given reason, and they ask to use yours. Maybe theirs is in the shop for maintenance or even for repairs after an accident. They could have flown into town to visit you. Perhaps their kid needed to borrow theirs so they are without one. There are plenty of reasons that someone may ask you to borrow their car. What you need to decide on is if you are willing to let someone borrow your car.

How-to: Decide if Someone Should Borrow Your Car: Weighing the Risks

Driving History

Before you let anyone borrow your car, you should consider what kind of a driver they are. Do you know they are a terrible, reckless driver? You may want to think twice about letting them drive your car. They will be unfamiliar with your car, so putting a bad driver in a vehicle they are unfamiliar with could be a total disaster. Also, consider things such as if your friend or a family member has a history of having a DUI. Anything that could mean a bad driving record should be a red flag to you.

Insurance

You will also want to consider your car insurance before you let someone borrow your car. This could come into play if the person driving your car is involved in an accident. Car insurance follows the vehicle, not the driver. When you allow a friend, family member, or babysitter to borrow your vehicle, your insurance takes primary coverage. For example, the person if your car is not at fault, the driver who is at fault will have to use their insurance to cover the damage. However, if the person who is using your car is at fault,  your insurance would likely cover the damage to the other driver’s car. In addition, your liability coverage would likely pay for any injuries or damage to the other driver as well.

Unless you have collision coverage, your insurance would not cover damage to your own car. Plus, if you do end up repairing damages using your collision coverage, you will probably have to pay your deductible. This would be the case even though you weren’t driving at the time of the accident. Keep this in mind when you consider whether or not you want to loan out your car.