How Sharing Your Car Can Leave Coverage Vulnerabilities

car accident & auto insurance san gabrielAuto Insurance Implications Of Sharing Your Car

“Sharing is caring” is a mentality that we have been encouraged to follow as we grow older and mature. However, could following this moto and being a good friend leave you vulnerable? Many motorists choose to lend their car to a responsible friend to help them out in times of need. However, whenever lending your car out to a friend you must consider the insurance ramifications beforehand.

Depending on the state you live in, your particular insurance company, and the coverage you have opted for, you may be able to lend your car and your insurance at the same time. This is because your insurance is considered the primary insurance policy in a car accident, meaning your policy will be responsible for covering any expenses associated with the accident. There are some exclusions that may apply, but you will need to discuss these possible exclusions with your insurance agent.

Car Sharing 101

Just because your policy is considered the primary policy does not mean that your friend’s coverage is in the clear just yet. If any expenses associated with the car accidents max out the limits of your existing auto insurance policy, their coverage will kick in to cover the remaining balance.

Keep in mind that some insurers will still attempt to dig into your friend’s auto insurance policy, even if your policy limits cover all associated expenses. Often, insurers will simply pay the entirety of the accident claim and then seek reimbursement from your friend’s policy. This will be dependent on the particular situation, the state you reside in, and your particular insurer.

Serving San Gabriel, Westminster, and surrounding California cities, contact Pulp Street Insurance Agency for all of your auto insurance needs. When it comes to handling a car accident and auto insurance in San Gabriel, we will be your guiding hand to ensure a smooth and swift process.

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