Fact or Fiction?
If I loan someone my car, their insurance covers any accidents they may have.
This is False.
In most states, when you loan your car to someone you are still responsible for anything that happens.
Even if your friend has great insurance, your insurance company would still be responsible for any accidents that may occur. Your friend’s insurance can sometimes be liable secondary, but only after your insurance has been held responsible.
Make sure you think twice before handing someone your keys.