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Loaning Your Car To Someone

Before loaning your car to a friend or family member check with your insurance company to make sure that they will be covered. This is a page about loaning your car to someone.


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November 8, 2006

Call your insurance company prior to loaning your car to a friend or a family member to make sure that you coverage extends to them. Your policy may have coverage for short term loans. It's important that they are covered because if they get an in an accident in your car, you could be held liable for damages even if you are not the driver.

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November 9, 20060 found this helpful
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You bet. And it works both ways. If you're borrowing someone's car, find out if they have insurance on the car. I just read a lawsuit against a man who borrowed a car, got into an accident that was mostly not his fault, and only found out after the accident that the car insurance had not been renewed 3 months earlier. As one of the drivers, he was found 20% responsible for the accident and ended up with a $30,000+ judgment against him.

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