Financial Channel

Hello,
I have a couple of question regarding insurance coverage when one person borrows a car to another. Here is the situation. Person A owns a fully insured car ( Liability insurance + PIP + Underinsurer/Uninsured Motorist insurance) and borrows his/her car to UNINSURED person B.
I am interested what if anythin will person A's insurance cover, in each of the following 5 cases when person B drives person A's insured car and gets into car accident. I would also like to know, in each case, if person B will be covered by person A's inusrance in case of bodily injuries on person B.

1 Uninsured Person B is at fault for hitting another insured car and driver causing physical injuru to that car as well as to person A's car and also causing bodily injury to people in other car as well as to himself/herself, that is person B.

2 Uninsured Person B is at fault for hitting a pedestrian and also causing some property damage.

3 Uninsured Person B is hit by another insured car and driver, resulting in physical damage to both cars as well as to bodily injury to person B and also to other driver

4 Uninsured Person B is hit by uninsured car and driver, and there is physical damage on both cars, as well as bodily injury to both person B and other driver

5 Uninsured Person B hits another uninsured car and driver, and there is physical damage on both cars, as well as bodily injury to both person B and other driver.

Thanks a ton

Insurance coverage will depend more upon the facts of the borrowing and lending, than the facts of the accident. It can also depend upon the terms of the policy. For example, is this a one-time loan, or is this effectively the borrower's car? At a certain point, the insurance policy will likely require the borrower to be added to the policy in order for there to be coverage. Also, does the lender know that the driver, for example, is a horrible driver, perhaps having a suspended or revoked license due to past accidents, infractions, or impaired driving. Some states have owner liability laws which make the owner vicariously liable for injuries caused by the driver's negligence.

The best thing for you to do is read your policy contract. Some policy terms drop liability coverage to whatever your state minimums are, even if you currently have the highest limits offered, in the event that an unlisted driver gets into an accident in your car.

Mike, the posts that you are responding to are over a month old.