Loaning out your car…

One of the most commonly asked questions from my office, is “if I let so and so borrow my car, are they covered?” A better question really is, if you loan your car, are YOU covered. Although the answer to both of these questions is yes, let me elaborate. A simple concept to remember is this…”if you loan your car, you are loaning your insurance, AS WELL as your financial statement! Sound scary? It is, and therefore you should take extreme caution when loaning a vehicle. If you loan your car, and the driver gets in an accident, YOU and YOUR insurance policy will most likely be called upon to respond., including responding to a lawsuit! If you don’t have enough liability insurance, YOU could face bankruptcy and a host of out of pocket expenses. Is the driver covered? The most common answer is yes, although some policies in some states put YOUR insurance policy in a secondary position, but either way, YOU and YOUR car insurance will be the ultimate responsible party!

Still wanna loan that car to someone?? There is way more to the story than just being a nice guy and helping someone out by driving one of your cars…it could cost you hundreds of thousands of dollars out of pocket! Call your agent at Heuer Insurance for more car insurance tips and hints….we have your best interests at heart and we got your back! Be careful out there….Go Giants

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