Should I keep my insurance while lending my car?

Asked over 1 year ago - Berkeley, CA

I will be out of the country for 6 months and would like my friend to borrow my car. She is a licensed driver and stay at home mom. I called my insurance company and they said adding her to my policy would be no extra cost to me.

However she told me that since she and her husband already own a car, it would just cost $20 for them to add the car to their insurance policy and I could just cancel my policy while I am out of country. But she is not on the title and I own the car. So is she right? What should I do?

Attorney answers (5)

  1. Adrienne Patricia Allen

    Contributor Level 15

    5

    Lawyers agree

    1

    Answered . Absolutely keep your insurance on your vehicle. If your friend causes an accident, you will be named in the lawsuit as the owner of the vehicle. In that case, you would want your carrier to provide you with your own attorney to defend you.

    I am licensed in California only and my answers on Avvo assume California law. The above answer is for general... more
  2. Jack Richard Lebowitz

    Pro

    Contributor Level 18

    4

    Lawyers agree

    Best Answer
    chosen by asker

    Answered . I agree with Mr. Gold. Much simpler to keep your policy and add friend as a listed insured/driver. Insurance is linked to the car registration and plates and VIN for that car. Changing it can cause all kinds of problems if there is a lapse in coverage, including your drivers license and registration getting screwed up and the possibility of fines. Also, while the insurance may cover personal injury to the driver and the other driver in an accident, you may need to be an owner or lienholder on a car to have an "insureable interest" on the collision portion of the policy covering damage to the car if you have it.

    Long story short, if your insurance carrier will add friend as an additional insured for no extra money, it's a no brainer. The only possible problem could be if your friend is a bad driver or has an accident with your car where she's at fault or gets a ticket, it may impact your rates, but usually only if you let her drive it again after the accident or keep her on the policy.

    This answer is provided under the Avvo.com “Terms and Conditions of Use” (“ToU”), particularly ¶9 which states... more
  3. Christian K. Lassen II

    Pro

    Contributor Level 20

    6

    Lawyers agree

    Answered . Word of advice....bump up your limits to protect yourself. An umbrella policy would be prudent.

    Only 29% Contingency Fee! Phone: 215-510-6755 www.InjuryLawyerPhiladelphia.com
  4. Manuel Alzamora Juarez

    Contributor Level 20

    3

    Lawyers agree

    1

    Answered . You would be crazy to cancel your insurance. Do not do it, on the contrary, raise the maximum Uninsured/underinsured and raise the limit of your coverage. I live in Berkeley and I see these type of case all the time. If anything happens to your friend, she will be sued, you will be sued and I hope you have a large policy big enough to cover your house. Especially if you live in the Berkeley Hills. Best of luck.

    This answer is provided by Manuel A. Juarez, Esq., El Abogado de Accidentes de Autos de California: 510-206-4492.... more
  5. Jeffrey Bruce Gold

    Pro

    Contributor Level 19

    4

    Lawyers agree

    1

    Answered . Keep your insurance if you can afford it.

    If you'd like to discuss, please feel free to call. Jeff Gold Gold, Benes, LLP 1854 Bellmore Ave Bellmore,... more

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