One of the most common questions that drivers have when purchasing a car insurance policy is how the policy will work if they decide to lend a car to a friend or family member - and how the policy will work if the policy holder decides to borrow or rent a car. There's no quick answer to this question, as car insurance companies deal with the other driver problem in several different ways, but it's important to know how your car insurance quotes will be affected if you decide to borrow or lend a vehicle.
First of all, if you borrow a vehicle and you own a car insurance policy, you're probably covered under your policy - not your friend's policy. In most states, if you buy a car insurance policy, it applies to any vehicle that you operate, including rental vehicles, so you won't have to worry about legally operating a vehicle that you don't own. However, you should keep in mind that you may not have sufficient coverage to pay for the costs of an accident, particularly if a friend has a much more expensive vehicle than what you drive. If you're going to borrow a friend's vehicle for a long period of time, it's a good idea to look for car insurance quotes that will provide adequate coverage for the borrowed vehicle.
Loaning a vehicle is more complex. In some cases, loaning a vehicle to another driver effectively loans them the vehicle owner's insurance coverage. This is usually true of drivers who live in the same household and drivers who pay for special insurance add-on coverage, but some insurance companies won't extend a policy holder's coverage in any circumstance. It's best to check with your car insurance company if you're loaning your vehicle to a driver who doesn't have car insurance, as the other driver may not be driving with your coverage, and an accident could result in a major loss for you. Ask your insurance agent to explain your policy's coverage for non-owner drivers. You should be able to get a good idea as to what your rights are, and this can be vital if you're going to be loaning your car out to friends or family members on a regular basis.
Regardless of who's borrowing a car, it's always a good idea to talk to an insurance agent to make sure that the other driver will have legal coverage. An accident can be a very serious matter if a driver isn't insured, but avoiding this situation can be a very simple matter.