Car Insurance For Borrowed Cars

Do you need temporary car insurance if you borrow somebody's car? Generally, if the owner of the car allowed you to drive it and the reason you drove it were for non-commercial reasons, the car insurance of the owner will cover you. However, it can help to have your own car insurance with a decent amount of liability coverage. Let's say that you are found to be at fault in an accident while driving a friend's car. You are responsible for $20,000 in damages to another car. If your friend's property liability coverage is only $15,000, you are responsible for that additional $5,000. However, if your own property damage liability is higher than $20,000, there is no reason to worry about the extra cost.

If you don't own a car you don't have any coverage that transfers over to the borrowed car. You can protect yourself by getting a nonowners policy, which is much cheaper than normal car insurance and gives your liability protection. You have to keep in mind that liability coverage does not protect you, but those around you.

Okay, we've talked about damage done to other cars, but what about damage done to the borrowed car itself in the event of an accident (if you are found to be the guilty party)? If your friend has collision and/or comprehensive coverage, you needn't worry about paying for damage done to your friend's car. Furthermore, it is very likely that if you have your own collision and/or comprehensive coverage, it will transfer over to the borrowed person's car.

Before you drive somebody's car, always make sure that you have their consent. If you don't, you can get in big trouble.