Sometimes people need to borrow someone else’s car, such as if their car is being serviced or repaired. However, people often do not consider insurance coverage for crashes that occur while they are driving someone else’s car.
This issue is particularly important in Pennsylvania, as we are a no-fault state and drivers are required to have first-party coverage.
Below, we discuss insurance coverage, including personal injury protection (PIP) benefits, for a crash that occurs while a policyholder is driving another person’s car. If you were injured in a crash and have questions about seeking compensation, give us a call today. There are no upfront fees for our services and we have a proven track record that we have achieved over decades.
Does Car Insurance Follow the Car or the Driver?
Car insurance coverage often follows the car. In other words, the insurance on the car will apply no matter who was driving. This is the case with certain types of insurance coverage, including:
- Bodily injury liability, which pays for injuries you cause in a crash
- Collision coverage, which pays for damage to insured vehicle
- Property damage coverage, which pays for damage to another vehicle in a crash caused by the policyholder
- Comprehensive coverage, which pays for damage caused by something other than a collision, such as damage from a fire, vandalism or theft
However, PIP benefits are different. These benefits follow the driver. What this means is if you borrow a car, your PIP benefits will follow you. If you get injured in a crash, you can use your PIP coverage to pay for medical bills and some other damages that are covered by this type of insurance.
If someone else borrows your car, they could use their own PIP insurance to pay their medical expenses. However, the other party could seek compensation from your liability insurance if the person who borrowed your car is at fault for the crash. You may also be able to use your collision coverage to pay for damage to your vehicle in the crash.
It is important to be careful about who you lend your car to. You may end up needing to use your insurance and other drivers may be able to file third-party claims against your liability coverage.
What if You Lend Your Car to Someone On Your Policy?
In Pennsylvania, PIP coverage extends to your family members and potentially others who live in your household. That means some people who borrow your car can use your PIP insurance to cover their damages.
What About Non-Owner Car Insurance?
If you do not own a car and regularly borrow or regularly rent cars, you may want to consider buying non-owner car insurance. You can add personal injury protection coverage to a non-owner policy to provide PIP benefits in case of a crash.
Non-owner coverage also provides liability coverage, which is for damages you cause in a crash. This would pay for medical expenses and property damage to the victim’s car.
A non-owner policy may supplement the vehicle owner’s policy. What this means if the damages you cause exceed the limits of the owner’s liability insurance, your non-owner policy would kick in. This may help prevent you from having to pay these extra costs out of your own pocket.
Whether you have non-owner insurance or a regular insurance policy, these situations can get complicated. That is why meeting with a Harrisburg vehicle crash lawyer may be a good idea.
Call Schmidt Kramer to Discuss a Car Crash Legal Claim
Some crash victims think they do not need a lawyer to help them pursue compensation after a car crash. However, going it alone is often a bad idea, especially because insurance companies are working against you.
By hiring an attorney, you can have an experienced advocate aggressively pursuing full compensation for your damages. He or she can manage each step of the legal process at no upfront cost. You do not need to concern yourself with filing deadlines and gathering evidence. Your attorney can manage the process and allow you to focus on your recovery.
Have questions? Call today for legal help. (717) 510-1782