MYTH: If a friend drives my car and causes an accident, it won’t affect my insurance rate.
Many drivers are unaware of their responsibility when lending their car to someone else. When it comes to lending a car, it is the insurance policy taken out by the owner of the car that will handle any incidents that might occur, even if the owner was not present at the time of the occurrence. If there is an accident, it may be the owner’s insurance and not the driver’s that will handle the claim. This means that if someone borrows a car and is found to be at fault for an accident, it may cost the owner of the car in the form of a deductible and/or increased car insurance rates. Make sure you know what type of driver someone is prior to lending your vehicle. If you’ve lent your car to someone who is driving with a suspended license or someone who doesn’t have a driver’s license, this will affect your driving record and could cause your insurance rates to increase.
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