Yes that's right you may want to really think about this question. Slow down, breathe, relax and count to ten. Breathe, relax, take a few minutes and really think about how you will answer this question. Ask yourself does your vehicle insurance cover your friend or relative if you allow that person to use your vehicle? Are you still hesitant about how to answer this question? Then you may want to consider what occurred in the following scenario:
Jason was relaxing on a warm summer day at his home when he heard a knock at his door. He looked out his window and there was his favorite aunt standing on his front door step. Jason opened up his front door excited to see his Aunt Sally. After speaking to his aunt for a few minutes she asked him if she could borrow his vehicle to go to their local mall. His aunt had explained to him that her vehicle was in for repair and she needed to run to the mall to pick up a pair shoes before her evening dinner date. Jason agreed to allow his aunt to use his vehicle for her errand. He gave her the keys to his vehicle without a second thought and she headed off for the mall and Jason resumed his relaxation and enjoyment of the beautiful summer day.
After a couple of hours Jason was awaken from a deep afternoon nap by the loud ringing of his telephone. He answered his phone and to his astonishment his Aunt Sally was screaming into the telephone to tell him that she was just in an accident with his brand new Corvette that he had loaned her to go to the mall. His aunt told him that the accident happened when she made her left turn to exit the mall parking lot. Jason was in a state of shock, he just could not believe what had just occurred.
He tried to stay calm while giving his aunt his vehicle insurance information to provide to the police and the other person involved in the accident. Jason tried to console his aunt who was very apologetic for wrecking his vehicle by telling her that his insurance would be able to pay for the damages she caused.
Jason concluded his telephone conversation with his aunt and called his insurance company. After speaking with his insurance company while filing his claim, he discovered that there was no insurance coverage for his vehicle. His claims adjuster told him that since his Aunt Sally was driving his vehicle and she was not listed on his policy as a driver that there was no coverage being provided for damages sustained in this accident.
He found out that his vehicle policy excludes coverage for any driver not listed on his vehicle policy from driving his vehicle. There was a clause in Jason's policy wherein permissive drivers were not allowed to drive his vehicle. It did not matter that Jason gave his aunt permission to use his vehicle this was not allowed by his insurance policy. Unfortunately for Jason, he would have no coverage for his Corvette or the other person's vehicle damaged in the accident with his aunt.
After hearing this awful news from his insurance company Jason was upset because he thought he had full coverage to cover him and anyone else that he allowed to drive his vehicle. He then reviewed his vehicle policy and discovered after reading the fine print that he in fact was not allowed to let anyone else drive his vehicle and if he did there would be no insurance coverage for his vehicle or the other vehicle(s) involved in an accident with his vehicle.
Jason thought to himself, what in the world was he thinking when he loaned out his vehicle to his aunt. Unfortunately for Jason, he was stuck paying for the repair for his own vehicle and the other party's vehicle involved in the accident with his aunt. In addition, he also found out later from his Aunt Sally that she did not carry insurance coverage on her own personal vehicle so there would be no possible insurance recovery for the accident via her policy.
Wow, Jason learned a costly lesson about loaning out his vehicle. So, before you consider loaning your vehicle to a relative or friend, make sure your vehicle policy covers them and they have the same amount of coverage that you have when you are driving your vehicle.
Review your vehicle policy and contact your insurance carrier before you make a decision to loan out your vehicle if you are unsure of how your policy protects you if you loan out your vehicle to a relative or friend. You will be glad you made this decision in the long run and you may be able to avoid being in Jason's shoes.