It may seem like a completely normal thing for your friend to borrow your car if they’re in a jam. But a seemingly simple request can become far more complicated if they’re involved in an accident when they’re driving. Thompson Insurance Services wants you to know a few more facts about this exact scenario for the next time someone asks you for a favor.

Insurance from the Surface

If you named your friend on your auto insurance policy specifically, then they are entitled to all the benefits you enjoy. They can use your car whenever they want, and they’re covered in the event of a collision. In this scenario, the insurance company will have to run your friend’s driving records to put them on the policy, which may or may not increase the cost of your rates. If the designated second driver on the policy has an accident, the policyholder may also be subjected to higher insurance rates. However, if you haven’t named your friend on your policy, then the answer is more complicated. 

How Coverage Works 

It’s the owner of the car that’s typically held responsible for the accident, so everyone in Dallas, TX should be careful about who they let use their vehicle. If your friend is insured by a different insurance company, then that company may or may not take partial or full responsibility for the damages. Unless there is a special clause regarding this exact scenario, insurance companies will typically work it out on a case-by-case basis. 

If you have any additional questions about how auto insurance works on an everyday level, give Thompson Insurance Services a call. We’re here to make it easier for residents of Dallas, TX to get the right coverage!