As the bookkeeper at home and Abrams Landau Ltd., I have exposure to car insurance polices and claims from multiple angles. I have discussed in other posts points to consider in choosing insurance companies and policies: encouraging you to look over your policies to be sure that coverage is high enough to protect you in case of an accident. Let’s face it, even if the other driver is at fault, that doesn’t mean he has the coverage needed to protect you and your family. Insurance is about protecting you and yours, not about protecting the person who hits you. So don’t be stingy, spend a little more so that you have enough insurance if you are hurt.
Keep this information in mind if you lend your car to someone else. Policies generally allow for a person to borrow your car. However you should understand that if there is an accident while someone else is driving your car, your insurance will be primary and the driver’s policy will be secondary. I have experienced this personally, as well as witnessed it many times here at work. When our daughter lent our car to a friend and this friend was involved in an accident with an uninsured motorist, our insurance covered the damage and then collected from the Virginia uninsured fund.
If a situation like this one occurs, then the borrower of the car MAY offer to cover your deductible, but his insurance policy WILL NOT be first coverage. Your policy takes the first hit.
So be a good friend or neighbor if you wish and lend out your car, but understand the risk involved is yours.