by lilgeered » Fri Oct 16, 2009 02:01 am
A friend is willing to loan me his car since my car has a part that needs to be replaced and I am unable to find the part. Is is not drivable. Can I get insurance on his car so I can drive it leaglly?
Posted: Fri Oct 16, 2009 05:42 am Post Subject:
I guess you'd be the insured driver in that case. But if you wanna get a vehicle covered under property insurance then the owner might be benefited only when you can show your insurable interest. If you may obtain permission to drive the vehicle from your friend, then you'd surely be able to show your insurable interest to the carrier.
Posted: Fri Oct 16, 2009 05:41 pm Post Subject:
If you may obtain permission to drive the vehicle from your friend, then you'd surely be able to show your insurable interest to the carrier.
Permission given by the insured to use his vehicle has nothing to do with insurable interest. Insurable interest is the concept that brings financial interest into play and is a completely separate concern. As well, the idea of "permissive use" is only applicable to persons that only use the car occasionally and do NOT have regular use of the vehicle. In this case, the "borrower" of the car would most likely be considered a "regular user" of the car and would need to be added as an additional driver under the car owner's policy. Depending on the carrier, this may or may not be a problem.
The OP could possibly, depending on the state in which he resides, purchase coverage on what's commonly called a "broad" form or "named-driver" form that would allow him to drive another person's car and be covered for LIABILITY ONLY. Broad form policies normally will NOT cover physical damage.
InsTeacher
8)
Posted: Fri Oct 16, 2009 07:10 pm Post Subject:
Ins Teacher hit it dead-on. Absolutely correct.
What I'll add to this thread is how this situation could be handled in Texas, as our state always has to do things a little different. :)
In Texas, you'd have two options, either be listed on your friend's policy as a driver (is the best situation for both of you) or purchase a non-owner's policy to protect yourself.
Understand though, if you purchased a non-owner's policy, you need to disclose to the agent that the vehicle will be garaged at your house, as many carriers do not accept this sort of situation.
If you are written on the Texas Standard Auto Policy, also note that your liability coverage would pay for any damages you caused (i.e. hitting another car) PLUS damages you cause to your friend's car. So make sure you carry enough insurance (Property Damage Liability) because it needs to be high enough to cover both what you hit and the damage to your friend's car.
Many companies in Texas however, have deviated from the Texas Standard Auto Policy, therefore, the liability coverage no longer covers the vehicle you are driving. In that case, you could find yourself in hot water with your friend if you cause damage to his car, as some companies wouldn't cover it. So make sure your agent understands you want coverage for the other vehicle and for your friend's vehicle.
Lastly, the reason I say it's best just to be listed on your friend's policy, is because your friend, being the owner of the car, is still responsible for the damages the car causes. If you get in a really bad accident, and your insurance is not enough to pay for all the damages (i.e. there is a fatality) your friend will find himself owing the balance.
Posted: Fri Oct 16, 2009 08:19 pm Post Subject:
Hi,
Yes off course friend, you can get insurance of that car, as AnMarieB told you in above post.
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Posted: Fri Oct 23, 2009 02:55 am Post Subject:
In NY state, the insurance has to be under the same name as the registrant of the car. Call Dept of Motor Vehicles in your state and see what they require to insure a vehicle
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