How does auto insurance work when you “loan” your car to another?
- February 2nd, 2010
- Posted in finance
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How does machine shelter impact when you "loan" your automobile to another?
I hit been intellection of "loaning" my automobile (which I own) to my 87 assemblage older father. I would then engage a container for myself. Then at the modify of the engage punctuation (let's feature 3 years) if he is no individual driving, the automobile returns to me. Can he acquire machine shelter on himself and the automobile or does it start upon me and my policy? My ascendant has an superior dynamical achievement and so do I.
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Best Answer – Chosen by Voters Call your insurance company to see if you can add him to your policy or if he would be covered under yours. Each state is different so ask them. And GO DAD!! 87 and an excellent driving record, those 2 things don't usually go together.
he needs to be owner or added to policy by owner to be covered.
Depends on the insurance company. Some policies like mine (State Farm) cover the car no matter who drives it as long as you voluntarily give them the car (in other words, it wasn't stolen.) Other insurance companies will only insure the car if you are the driver, many will even exclude other members in your household. If you recall them asking you to identify other household members and you named your father when you first signed up, that is probably what they were doing.You should be able to determine what applies in your case by reading the policy. If you can't find it or don't understand it, call your agent for clarification. Your situation may be further complicated because you may run into problems being considered the "primary" driver of the vehicle, especially if you lease another at the same time so be sure to explain this to your agent.
he can purchase a policy for himself in the USA.
He would need to get his own insurance for the car, or to be added onto your policy as a driver.Either one would work, but it might be cheaper (and easier) to add him to your existing policy.Your coverage (in most cases) would not pay for any damage done to or done by the car while Dad is driving.