Understanding Insurance Coverage When Loaning Your Car to Friends or Family

Unexpected situations involving a vehicle, such as breakdowns or accidents, can often lead to a friend or family member asking to borrow your car. Whether you live in Saint Paul, MN or travel to other Minnesota cities, it’s important to understand if your insurance covers friends or family members who borrow your vehicle. At Rising Star Insurance, our agents can explain the nuances.

Considerations When Loaning Your Vehicle in Saint Paul, MN

Generally, if a friend or family member occasionally borrows your car and gets involved in an accident in Minnesota, your insurance policy provides coverage. However, there are instances when your policy may not cover damage incurred by the borrower.

For instance, if the person borrowing your car consumes alcohol and then drives, resulting in an accident and injury to another driver, you could be held responsible. This could mean paying for medical expenses, specialized care, rehabilitation, or other losses the injured party incurs.

Other factors to consider include:

• The person borrowing the vehicle must have the owner’s permission for normal use.
• If the borrower allows another person to drive the vehicle, your insurance does not apply.
• The borrower should have their own insurance in case your coverage is insufficient to cover accident/injury costs.
• Criminal or negligent use of the borrowed vehicle is not covered.
• Personal auto coverage does not cover borrowed vehicles used for business purposes.

Contact Us for More Information

When deciding whether to allow a friend or family member to borrow your vehicle, contact us at Rising Star Insurance. We can provide you with the necessary information about policy coverage.