So you let your friend borrow your car, and they had an accident. Will your auto insurance policy pay?
If the accident causes bodily injury to another person or damages their property, the accident could result in a liability claim due to the negligence of the at-fault driver. Even if you are not the driver, your policy will normally still cover the claim. That is because your auto policy includes coverage for accidents when other persons are using your car with permission.
Should your friend or a passenger sustain an injury in the accident, your policy would normally pay the cost of medical expenses up to a specified dollar amount. The coverage you need in order to be insured for such expenses is often called “Medical Payments,” and the amount your insurer will pay is listed on your policy.
Regardless of who is driving your car at the time of the accident, your policy will normally cover the cost of the damage as long as you have insurance for the car. The coverage you would need for damage resulting from an accident is often called “collision” or “physical damage.”
Take a look at your auto insurance policy for coverage types and amounts, often on the front page of the document from your insurer. If you are wondering about the extent of your protection or the amounts your insurer will pay in case of an accident, call your agent or visit us at HillsBank.com/Insurance.Reprinted by permission, The Mines Press, Inc. Volume 44, Issue 6. Insurance products are not a deposit, not FDIC insured, not insured by any government agency, carry no bank guarantee, and may go down in value.