Fortunately for many of us in the tech-fueled Northwest, the hardships of the Great Recession are fading faster than the Relentless Recycler can separate glass from aluminum cans. But one frugal habit – "collaborative consumption" – has stuck. The idea of sharing everything from garden tools, to your spare room, to your car just seems to make economic and environmental sense.
But when you hand over your wheels, you might be lending more than you expected. Your auto insurance – not the driver's – is the first line of defense if your friend gets in an accident while driving your car. In fact, his or her insurance would kick in only after your policy's limits were exhausted. What's more, your deductible would apply, the accident would become part of your insurance record, and the accident may be reflected in your future premiums.
That's a pretty compelling reason to make sure the person who borrows your car is as careful behind the wheel as you are!
Every situation differs and you'll want to talk to your PEMCO agent or representative if you have questions. Coverage can vary, for example, if you lend the car to someone for an extended period of time or if the person lives in your household.