2006-12-12 20:33:16 · 6 answers · asked by gingerxx0xx 1 in Cars & Transportation ➔ Insurance & Registration
If you give your friend permissive use to drive your car, they would fit the definition of an insured person by being a permissive user. Your insurance company will cover the loss and any resulting damages your friend may be legally liable for (property damage, injuries). In some states, there may be a step down provision on a permissive user which means the bodily injury limits drop down to whatever the state minimum coverage is where the loss occurred. For instance, if you carry coverage of 100/300 and the state minimum is 25/50, then your friend would only be covered up to a $25,000 injury loss rather than $100,000.
If your friend causes a loss and the damages exceed your coverage, he will not have any excess coverage to protect him as he has no policy of his own.
There are some states with laws that hold you vicariously liable for a loss when you allowed your friend to use a car and a loss occurs. Even in those states that don't have such a law on the books, the concept of negligent entrustment can be raised if you lent your car to a friend with a checkered driving history such as DUI, Reckless, several cites, etc.
Bottom line is.....be careful who you lend your car to. Good luck
2006-12-13 10:19:58 · answer #1 · answered by RYAN 2 · 0⤊ 0⤋
Your friend does NOT need insurance! As the owner of the vehicle, YOU do need insurance. YOUR insurance will cover any claims, up to your policy limits. (If your policy limits are too low to cover all damages, you and the driver will be equally responsible for the remainder.)
Insurance follows the vehicle, not the driver.
2006-12-12 20:45:11 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Your insurance is primary, since it was your car. He does not need insurance to drive someone else's vehicle.
If he DID have insurance, your insurance would still be primary. His would be excess, if the damages exceeded your policy limits.
2006-12-12 23:03:31 · answer #3 · answered by jerry 5 · 1⤊ 0⤋
you are both liable and they'll hound you both until someone pays up. In most states you are required to have insurance anyways...
2006-12-12 20:36:26 · answer #4 · answered by Red Winged Bandit 4 · 0⤊ 0⤋
he's insured because you gave him permission to drive the car
2006-12-12 20:37:53 · answer #5 · answered by Loollea 6 · 0⤊ 0⤋
You are liable...
2006-12-12 20:34:44 · answer #6 · answered by nurse33 3 · 0⤊ 0⤋