How Does Collision Insurance Work for a Borrowed Car?

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Just because you're using a borrowed car doesn't mean that you can't get collision insurance. Find out about how collision insurance works for a borrowed car with help from a fee-based insurance and risk management consultant in this free video clip.

Part of the Video Series: Auto Insurance
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Video Transcript

Hi, I'm Dan Weedin, and I'm a nationally-recognized insurance consultant. Today, we're going to talk about how collision coverage works on borrowed vehicles. If you're like me you had to borrow cars once in a while. I know in my case mostly to move things, whether it's property or what ever and you're always worried what happens it I get into an accident? What does that mean for the insurance and for me? Well, specifically we're here to talk about collision coverage, which comes into play when you get into an accident and or you collide with something. Here's the bottom line, insurance follows the vehicle. So whoever the car that you're borrowing from, it's their insurance that's going to cover that. Here's a very important key, if that person does not carry collision coverage, there is no coverage. So the important thing to remember if you're going to be borrowing a vehicle, talk to the person that you're borrowing it from, ask them what type of insurance coverage they have and if it includes collision. If it includes collision then you're okay from an insurance standpoint. You may not be okay from your friends standpoint, especially if it's your fault. However the collision coverage that comes into play will be from their policy. Here's something else to consider though you still need to have insurance. Why? Because if it's your fault your friends insurance carrier, that just payed the claim, they may be coming after you, if you're at fault. So let's just say that for what ever reason you weren't paying attention and you rear ended somebody, the collision coverage on that vehicle will be paid by your friends insurance. However if they find out that it was your fault, you weren't paying attention, you were negligent. Then all the sudden that becomes your problem and they may come after you, wanting payment from your insurance company's liability. Bottom line, insurance coverage follows the vehicle and you don't have to worry about that, you can borrow your friends car. Now, I guess the other thing that we need to talk about is, if they don't have collision coverage, it may then be secondary coverage on your vehicle. So find out first of all if your friend has insurance coverage for collision on their vehicle and then you can go from there. Insurance coverage follows the vehicle and collision is no exception. Again, I'm Dan Weedin and that's a little bit about borrowed cars and collision coverage. Thanks for watching.


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