Page 14 - 3rdQTPersonalNL

So you lend your car to a friend, and he gets into an accident. Who’s nancially responsible -- you or your friend? What about a situa on when you need to rent a car? Should you opt for the rental car insurance or will your exis ng auto insurance cover you in the event of an accident? Put another way, is your car insurance ed to you or to your car? The answer: It depends.
Who’s responsible if your friend crashes your car?
Your friend’s insurance would be secondary, and his provider would only step in if the damage exceeds your insurance limits. If your friend is uninsured, however, and the damage is extensive and involves other vehicles, the a ected par es could look to you for property damage reimbursement and medical expenses. Note: even if your friend didn’t have permission to use your car, this can be di cult to prove.
Let’s tackle the rst scenario when your friend crashes your car. Personal auto insurance is a ached to the vehicle in this case. If your friend is found liable, you would likely be held responsible and your car insurance would then apply.