Mar 11 2008
Auto Insurance covers your car, not the one you borrow.
One question I’ve heard was from a person by the name of Shawn wondering if his own auto insurance would cover another family members car which he happened to borrow and bump into a wall with. The answer to this question is no… When it comes to auto insurance, the coverage is only for the car on the policy, not every car the policyholder happens to drive. Now with that in mind, hopefully the family member’s car is covered on a separate policy for one. If so everything should be able to get repaired once the deductible is paid. If Shawn is a good guy, he’ll probably take it upon himself to pay the deductible for this mistake. If he is a great guy, he’ll pay any increase in the insurance rate on that car for the next couple years. Depending on the cost of the repair, Shawn may want to pay for all the damages himself without having his relative, the car owner, make a claim.