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    Thread: How does insurance work on a borrowed car?

    1. Member
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      12-26-2007 08:10 PM #1
      I've been contemplating moving some furniture from my family's house in Northeast PA to my apartment in Syracuse, NY. Nothing HUGE, but bigger than will fit in my Jeep.
      I'm wondering exactly how insurance works where borrowed vehicles are involved. Say I borrowed a pickup truck from a friend and got in an accident. Would my insurance cover me as a driver (I'm on full-coverage from State Farm)? Or would his insurance take the hit?
      I'm a little more wary of this as in the last 2 years I've seen a few borrowed-car accidents at college. Whose insurance gets involved, and who gets affected? If I were to total a car I borrowed from a friend, whose insurance rates go up?
      Editorial Assistant and Saturday writer at the tech blog Gizmodo, automotive freelancer with a heart of gold. Find me on Twitter (@rsorokanich), Facebook, or in any bar that serves Yuengling on draft.

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    2. 12-26-2007 08:19 PM #2
      You both have insurance.....how bad could it be?

      What could possibly go wrong?



      Modified by CarLuvrSD at 6:32 PM 12-26-2007

    3. Member
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      12-26-2007 08:29 PM #3
      Quote, originally posted by CarLuvrSD »
      You both have insurance.....how bad could it be?

      I'm just curious whose insurance takes the hit. This is more of a general question that was inspired by my moving plans . . . it's not a "zOmG I can't borrow a car!" kind of thing.
      Editorial Assistant and Saturday writer at the tech blog Gizmodo, automotive freelancer with a heart of gold. Find me on Twitter (@rsorokanich), Facebook, or in any bar that serves Yuengling on draft.

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    4. 12-26-2007 08:30 PM #4
      I've always wondered the answer to this question.

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      12-26-2007 08:39 PM #5
      I thought your insurance would cover it all

      although i dont even pay my own insurance yet, so im probably wrong

    6. 12-26-2007 08:41 PM #6

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      12-26-2007 09:53 PM #7
      This happened to me. IF you wreck their car, their insurance covers it. My rates got jacked.
      Man...sacrifices his health in order to make money. Then he sacrifices money to recuperate his health. And then he is so anxious about the future that he does not enjoy the present; the result being that he does not live in the present or the future; he lives as if he is never going to die, and then dies having never really lived. - Tenzin Gyatso

    8. Member
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      12-26-2007 09:57 PM #8
      Quote, originally posted by 2Cor »
      This happened to me. IF you wreck their car, their insurance covers it. My rates got jacked.


      So the owner's insurance covers the accident, but the accident does not count toward the owner, and the owner's rates don't change. Meanwhile, the driver's insurance pays nothing, but the rates go up as if the driver had an accident?
      I guess that's fair.
      Editorial Assistant and Saturday writer at the tech blog Gizmodo, automotive freelancer with a heart of gold. Find me on Twitter (@rsorokanich), Facebook, or in any bar that serves Yuengling on draft.

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      12-26-2007 10:00 PM #9
      Everything counts toward the vehicle owner. I loaned my car out and it got wrecked. The only thing the driver paid for was the guardrail. The owners rates go up. Sorry for my lack of clarity.
      Man...sacrifices his health in order to make money. Then he sacrifices money to recuperate his health. And then he is so anxious about the future that he does not enjoy the present; the result being that he does not live in the present or the future; he lives as if he is never going to die, and then dies having never really lived. - Tenzin Gyatso

    10. Member mhjett's Avatar
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      12-26-2007 10:05 PM #10
      insurance is too confusing to understand. once you get into how the insurance industry works, reinsurance, and everything else, it's almost impossible to tell who actually "pays," and practically, if you both have insurance it doesn't really matter.
      my guess is that the other person's insurance pays for car damage, yours would probably pay for damage to your body/health, and any points would hit your license (and affect your insurance rates). I have nothing to back that up though.
      2008 VW Jetta SE 2.5
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    11. 12-26-2007 10:42 PM #11
      Insurance companies like to make both parties pay whenever possible. If it's a clear one-sided accident like a rear end at a stop light (aka me) the driver at fault pays out the ass. If they find any sort of loophole (like a friend of the owner ruins the owner's car) both parties' rates get jacked through the roof. The driver for being stupid and crashing, the owner for being more stupid and lending the car to the friend.
      The point is, you will never know who will pay what until it happens. I was parked in a parking lot and a moron hit me while backing out and we both had to pay... just don't hit a guard rail and you will be fine

    12. 12-26-2007 11:55 PM #12
      If you think about it, it makes sense for the owner's insurance to pay. The owner purchases insurance for his or her car to cover damages made to that car. It is the owner's decision to allow someone to borrow the car; from the insurance company's point of view, this is a potentially high-risk activity. If the owner makes an insurance claim, or if a claim is made against the owner's insurance, then this is due at least partly to the owner's actions.
      Sad but true.

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      12-26-2007 11:57 PM #13
      I guess it just seems odd that, essentially, the borrow walks away scot-free in this case. I think if I were in such a situation, I'd offer to fix the car out-of-pocket and not even get insurance involved.
      Editorial Assistant and Saturday writer at the tech blog Gizmodo, automotive freelancer with a heart of gold. Find me on Twitter (@rsorokanich), Facebook, or in any bar that serves Yuengling on draft.

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    14. 12-27-2007 05:39 PM #14
      Quote, originally posted by manboy »
      If you think about it, it makes sense for the owner's insurance to pay. The owner purchases insurance for his or her car to cover damages made to that car. It is the owner's decision to allow someone to borrow the car; from the insurance company's point of view, this is a potentially high-risk activity. If the owner makes an insurance claim, or if a claim is made against the owner's insurance, then this is due at least partly to the owner's actions.
      Sad but true.

      The owner will get slammed for the damage so his rates will go up, and the driver will get slammed with an accident on his record so his rates will go up as well. [IMG]http://*****************.com/smile/emthdown.gif[/IMG]

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      12-27-2007 07:00 PM #15
      Quote, originally posted by e36rok »
      The owner will get slammed for the damage so his rates will go up, and the driver will get slammed with an accident on his record so his rates will go up as well. [IMG]http://*****************.com/smile/emthdown.gif[/IMG]

      I agree.
      The old mantra is "insurance follows the car" and in the case of a borrowed car the owner's insurance is primary. The borrower's insurance will be secondary. If you, as a borrower, cause more damage than the policy limit of the owner's insurance, your policy will be hit for the overage -- depending on the allocation scheme spelled out in the policy. Most likely the owner's insurance will, after it pays the injured party, attempt to subrogate against your insurance for what it paid out.
      In the short run, the answer is the owner's insurance pays.
      In the long run, the answer is everybody's rates go up, and the borrower's insurance will probably pay something.
      Basically, if you wouldn't trust someone enough to hand them a loaded gun, think twice about lending them your car.

    16. 12-27-2007 07:48 PM #16
      When I was in college some people I knew would get upset with me when I would not let them borrow my car. Unfortunately, the college was located in a rural area, with a HIGH incidence of hit and run, no real auto state safety inspection to speak of, numerous uninsured motorists and worst of all, a legal drinking age of 18. Back then, I paid out the AZZ for car insurance in addition to some of my college bills. Needless to say, I never, ever, loaned my car out back then.
      Now-a-days I seldom, if ever, loan out my vehicles. This lawsuit happy world we live in means I would be the first one facing a lawsuit if someone borrows my vehicle and seriously injures or kills someone else.
      Charlie

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      12-27-2007 08:47 PM #17
      Quote, originally posted by charlier »
      When I was in college some people I knew would get upset with me when I would not let them borrow my car.


      Yeah, I had my car on campus my freshman year (generally not allowed) and people would bug me 4 days a week (Thurs-Sun) to borrow my car. They'd get all pissy when I told 'em no (my excuse, a legitimate one, was that it was on my father's insurance and the stipulations said no drivers not on dad's insurance).
      About 3 months into my first semester, a friend lent his A4 to a buddy who subsequently wrecked the thing. There was some loud discussion in the dorm that evening
      Editorial Assistant and Saturday writer at the tech blog Gizmodo, automotive freelancer with a heart of gold. Find me on Twitter (@rsorokanich), Facebook, or in any bar that serves Yuengling on draft.

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      12-27-2007 08:50 PM #18
      I NEVER let anyone drive my car (then again I do drive a stick) but I sure as hell have no problem driving someone else's. No fault for the win in this situation.

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