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BOOBIES
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Discussion Starter #1
So as you all know, I will be going to Japan in a few months and I was looking for a cheap little beater to drive around and then sell before I left. However, I managed to find a friend who is willing to lend me his Accord until I go, since he will be out of the country anyway. I'd pay him something each month in return for the use of the car.

So, can anyone tell me what I should be doing with regards to insurance, etc.? Does anything even need to be done, or can I just say that my friend let me borrow the car???

I'm totally clueless, but it seems like a pretty common situation so if someone could provide me some info it would be greatly appreciated.

Thanks,

Aaron
 

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...smell like cabbage
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1,097 Posts
The insurance is on the car, not the driver. A guy could steal the car out of his driveway and crash it into a tree and it'll still be covered. If anything happens though you will have to play the game with the insurance company though because you "should" be registered as a temporary driver if you are going to be driving the car a lot. You'll have to say that it was your first time driving it blah blah blah.
 

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BOOBIES
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Discussion Starter #3
I thought so.

NICE! My car troubles are solved.
 

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Damn Spaniards
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Not really. Insurance covers the driver. In your situation the coverage has to be in your name somewhere for it to be valid. Unless of course if something were to happen and you tell the police the car is stolen so that the coverage is in your friends name. The price you will pay is going to jail for grand theft auto.

The reason why the insurance will cover the driver in a stolen car situation is because the driver clearly isn't authorized to drive the car and his actions aren't on your behalf.

Insurance companies will only cover authorized drivers that are listed as such with them. If you get into an accident as a driver in someone else's car and you aren't on their insurance you are technically fucked.
 

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BOOBIES
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Discussion Starter #5
Not really. Insurance covers the driver. In your situation the coverage has to be in your name somewhere for it to be valid. Unless of course if something were to happen and you tell the police the car is stolen so that the coverage is in your friends name. The price you will pay is going to jail for grand theft auto.

The reason why the insurance will cover the driver in a stolen car situation is because the driver clearly isn't authorized to drive the car and his actions aren't on your behalf.

Insurance companies will only cover authorized drivers that are listed as such with them. If you get into an accident as a driver in someone else's car and you aren't on their insurance you are technically fucked.
Are you sure about this?

Because I've heard of friends lending their cars to friends and then the friend who borrowed the car got into an accident, but they never got arrested. The paid for the damages though.

GTR, what's your recommendation in this situation?
 

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Registered
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598 Posts
Call your insurance company as should he to find out who or what is covered...


I believe it goes both ways, thats why when you hear of "Uninsured Motorists" - they are talking about the DRIVER, not uninsured cars. Someone with a driver's license, their own cars, cant just hop in your car & run it into something and expect to get paid. Same thing goes if you are insured and your friend isnt, then you hop in his car and crash it.


Find out what is covered on the POLICY...and i hope you dont crash it!
 

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I was told by my agent that as long as the person is 25, it does not matter who is driving.
 

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Something cool
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The insurance is on the car, not the driver. A guy could steal the car out of his driveway and crash it into a tree and it'll still be covered. If anything happens though you will have to play the game with the insurance company though because you "should" be registered as a temporary driver if you are going to be driving the car a lot. You'll have to say that it was your first time driving it blah blah blah.
+1 covered no matter who's driving. Step-dad has owned an insurance agency for 25+, just need to take the test to get my license.
 

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BOOBIES
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Discussion Starter #10
+1 covered no matter who's driving. Step-dad has owned an insurance agency for 25+, just need to take the test to get my license.
I guess I should take the advice of someone in the business.

I do not plan on crashing this car guys, but thanks for the concern lol.

So as long as the owner of the car has an insurance policy on it, I'm good to drive?

He's asking his Dad who is a lawyer, but I just thought I'd see if anyone here had experience first-hand.
 

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he doesn't need to ask his Dad, he needs to look on his policy.

Most likely, you don't need to be named unless you're younger than the named driver. Many insurances cover someone driving the car if they are over 25 even if not named on the policy, some cover the driver and anyone older than the driver(if you want younger you have to pay more), others cover only people over 30, etc.

Don't get secondhand advice, even from a lawyer - your first port of call should be the policy statement.
 

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I'm an agent. You do not have to be listed on the policy. You technically could be listed if you lived in the household, and didn't have your own insurance. Also, you can only insure a car you own, meaning you have to have an "insurable interest" in the vehicle, which you don't (because it's not yours).

You're totally legit to drive his car and be covered. Insurance follows the vehicle (NOT the person).
Whatever coverage he has on the Accord will extend to you, under a provision called "Permissive Use." As long as he "gives you permission" to drive his car, you'll be fine.

Regarding the stolen car scenario.
Lets say you have a 2005 Honda Accord with Full coverage (Comp and Collision).
If someone stole the car, and crashed it into another car, the insurance company is *not* liable for any liability damages, because the thief did not have "Permissive Use" to drive the vehicle. Therefore any damages to any other car resulting from that are not covered. The other party would obviously have a criminal claim against the theif for property damages.
The only coverage that would be paid in this case (under the Accord policy) would be Comprehensive (covers theft, vandalism, fire, hail....etc), minus the owners deductible.
 

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BOOBIES
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Discussion Starter #13
I'm an agent. You do not have to be listed on the policy. You technically could be listed if you lived in the household, and didn't have your own insurance. Also, you can only insure a car you own, meaning you have to have an "insurable interest" in the vehicle, which you don't (because it's not yours).

You're totally legit to drive his car and be covered. Insurance follows the vehicle (NOT the person).
Whatever coverage he has on the Accord will extend to you, under a provision called "Permissive Use." As long as he "gives you permission" to drive his car, you'll be fine.

Regarding the stolen car scenario.
Lets say you have a 2005 Honda Accord with Full coverage (Comp and Collision).
If someone stole the car, and crashed it into another car, the insurance company is *not* liable for any liability damages, because the thief did not have "Permissive Use" to drive the vehicle. Therefore any damages to any other car resulting from that are not covered. The other party would obviously have a criminal claim against the theif for property damages.
The only coverage that would be paid in this case (under the Accord policy) would be Comprehensive (covers theft, vandalism, fire, hail....etc), minus the owners deductible.
Thank you very much.

I'm not sure if this act is applicable in Canada, but I will make sure he looks into his policy before anything.

Appreciate all the info in the thread. Thanks guys.
 

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Moderator
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Get written permission and keep it with the registration/insurance just to be safe.

I, Hoser McCanada, give permission to Eggbert to drive my car from xxxx to xxxx.
Signed,
A fucking Canuck
 

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Registered
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98 Posts
I'm an agent. You do not have to be listed on the policy. You technically could be listed if you lived in the household, and didn't have your own insurance. Also, you can only insure a car you own, meaning you have to have an "insurable interest" in the vehicle, which you don't (because it's not yours).

You're totally legit to drive his car and be covered. Insurance follows the vehicle (NOT the person).
Whatever coverage he has on the Accord will extend to you, under a provision called "Permissive Use." As long as he "gives you permission" to drive his car, you'll be fine.

Regarding the stolen car scenario.
Lets say you have a 2005 Honda Accord with Full coverage (Comp and Collision).
If someone stole the car, and crashed it into another car, the insurance company is *not* liable for any liability damages, because the thief did not have "Permissive Use" to drive the vehicle. Therefore any damages to any other car resulting from that are not covered. The other party would obviously have a criminal claim against the theif for property damages.
The only coverage that would be paid in this case (under the Accord policy) would be Comprehensive (covers theft, vandalism, fire, hail....etc), minus the owners deductible.
and I'm an adjuster, and can confirm everything this guy said is true.

enjoy the wheels :love:
 

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BOOBIES
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3,214 Posts
Discussion Starter #17
Get written permission and keep it with the registration/insurance just to be safe.

I, Hoser McCanada, give permission to Eggbert to drive my car from xxxx to xxxx.
Signed,
A fucking Canuck
:lol:!!

Thanks guys! :love: SF
 
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