You know that ambiguous relationship status, "It's Complicated," on Facebook?
That's the one we'd need to select if we wanted to explain in two words whose insurance coverage would apply if you borrow a friend's car and get into an accident.
Why so tricky? Most of us would intuitively think it's an either/or question: Either our own insurance policy would cover the accident (since we were driving) or our friend's policy would pick up the tab (since it was his or her car).
But the truth is, responsibility is more likely to be shared between available insurers. Insurance policies are detailed contracts and include specific clauses that address coverage when others are driving with the owner's permission. Some are more restrictive than others and cover only the people named on the policy.
To sort it all out, the first step would be calling both insurance companies – PEMCO and your friend's – because the accident will become part of
both of your insurance records. That can sound a little unsettling, but know that PEMCO's mission is "worry less and live more." We'll stand with you in coordinating coverage with the other company and, ultimately, work out how responsibility is allocated for the costs.
We can help you better understand the particulars of your own policy so you can make an informed decision about borrowing or lending a car. Call your local PEMCO agent or 800-GO-PEMCO.