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“Is there coverage when you loan your car to a friend?”

Homestead Insurance and Financial Services

Question- “What if you loan your car to a friend, and he or she has an accident?”



If any of your friends who are driving your automobile have an automobile insurance policy, their injuries will be covered under their own policy, not yours. If they are not covered under their own policy, and no one in their household is covered under a policy, the basic economic loss benefits will be paid from your policy.

Who pays for damage to the car, however, is not quite so simple. Your car will always be covered under your own policy as long as the policy carries comprehensive and collision coverage. Under certain circumstances, however, the policy covering the other vehicle may pay for damage to your car. It depends on who is at fault. Check your policy under the definition of “your covered auto”, or give us a call.


Steve Rehm

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