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Auto Insurance Question from Orchards, Washington

Asked on 3/19/2015.   This question has received 798 views.
Can i loan a car to a friend who has their own insurance   i have a car i want to loan to a friend. my friend has their own insurance ( cr22 ). if anything happens could i be liable ?

Answer given on March 22, 2015


In auto insurance, the insurance follows the car. If your friend drives your car, they will be covered under your policy as a permissive user. If they cause an accident in your car, your insurance will be responsible for any damage or injuries sustained in the accident. This applies even if the other driver has their own insurance. If the accident causes damages or injuries that exceeds your liability coverage, then the insurance for the other driver will be applied to that excess amount. They would then need to report the accident to their auto insurance company. Since the other driver is not listed on your insurance policy and they have their own insurance, your insurance rates will not be affected if the friend causes the accident. However the rate on their insurance policy can go up.

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