How does insurance apply if I borrow someone’s vehicle, and get into an accident?

This is a very common question, and an important concept to understand!

Before proceeding, it is necessary to know the major parts of an auto policy:

1. Bodily Injury – damage done by YOU to the OTHER DRIVER in an accident for injuries related to their body.
2. Property Damage – damage done by YOU to tangible property.
3. Physical Damage – damage to the VEHICLE that you are driving.

Here is a scenario that will help explain the insurance process if there was an accident.

Let’s say that you borrow a passenger van from your friend Steve. As soon as you get on the road, BAM! You hit a stranger’s Chevy Impala. Now, the person you hit will have to go to the hospital and your friend’s van must be taken to the auto shop for repairs.

Here are the questions at hand:

1. Whose insurance is responsible for the STRANGER’s hospital bills and vehicle repairs?
2. Whose insurance is responsible for the repairs to STEVE’S VAN?

To answer simply:

1. STEVE’S (The vehicle owner) insurance is responsible for repairs to HIS vehicle.
2. YOU (The driver) are responsible for liability costs (damage to the other driver) to the driver you crashed into.

To conclude. If you ever plan on taking a road trip with someone else’s car, make sure they have physical damage coverage for the vehicle itself on THEIR POLICY, and that you have bodily injury and property damage coverage on YOUR POLICY.