Imagine with me three different scenarios. I’m sure you may identify with one of these examples!
- You’re hosting a dinner for friends. You need one last item from Whole Foods so you give some money and your car keys to one of your guests and ask them to get it for you. The store’s only two minutes away. What could go wrong?
- You own a pickup truck. That makes you a popular person with anyone needing to pick up something from Ikea that doesn’t fit into their Mini Cooper. Can they borrow the truck for 2 hours to run up to Frisco and pick up that sofa?
- You and two of your BFF’s are heading to the Hill County to meet up with some sorority sisters since graduating. It will be a weekend of fun and time to compare notes on life, jobs, etc. You’re tired so you ask one of your friends to drive while you take a nap.
Something goes wrong.
- You gave permission to someone you know to drive your car or truck.
- Your friend bumps someone’s car.
- The accident is your friend’s fault.
Your friend didn’t mean to have an accident, who does? They feel horrible. They’re even willing to file the claim on their insurance.
Whose insurance pays the claim? Yours does. This claim is yours to file because you own the vehicle. Being the owner means you and only you have insurable interest. That’s why it’s your claim to file.
Consider these three points and a question before you loan your car or truck to a friend or ask someone to drive for you;
- Depending on the carrier (it does vary from company to company), your insurance could go up when it renews because of the accident.
- If you vehicle was damaged, even with the repair, its value will be less than it was before the accident because it was involved in an accident.
- If something bad happened, the other party could sue you and your friend.
- What would the impact be on the friendship if something did happen?
In each case you as the owner have something to lose if something goes wrong. Chances are nothing will happen, but it if did, are you willing to live with it? If you know the facts, you can make an informed decision that’s right for you.
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