What You Need To Know Before You Borrow Or Lend A Car
With the family gathered for the holiday season, your out of town relatives are likely in town and out a ride. As a generous host, you are probably inclined to lend them your vehicle when they need to get around. Before you do, though, consider that you are not just letting them borrow your automobile but also your insurance policy.
Should an accident occur while Uncle Joe is driving your car, your insurance policy will be the one to cover the damages. That is because, in most states, the insurance coverage travels with the vehicle. Even if Uncle Joe agrees to pay your deductible, your insurance premiums are extremely likely to increase after the claim is filed for his accident. As a result, it is worth your while to make sure you are only lending out your vehicle to responsible drivers.
If the added cost to your insurance bill is not motivating enough, remember that it possible that if you let a dangerous driver (someone who has been drinking, has a suspended license, or has a certain criminal history) use your car and they cause damage, criminal charges can be pressed against you.
If you are on the other end of the bargain and are thinking of borrowing grandma’s car to stock her refrigerator for her, make sure that the car is properly registered and has current insurance. If you get into an accident with a car that does not have current coverage, your insurance will be responsible for picking up the tab. You can avoid the hassle, up-front expense, and higher premiums by making certain any car you take out on the road is properly covered.
For all of your auto and home insurance needs, contact McCarty Insurance Agency in Fresno, California today. We are committed to getting you the coverage you need for the price that is competitive on your auto insurance.