Short Term Car Insurance Coverage for Borrowed Car
Reader’s Question:
Do I need to buy short term car insurance coverage for my friend who will borrow my car for a number of days?
Pearl
Nashville, TN
Yes, in this matter, if your friend does not have his own car insurance policy, then it would be better to obtain short term car insurance coverage just to be on the safe side. Although he may be covered under your car’s coverage, if he gets into an accident, then the claims will be put against your own car insurance record. And this will be very bad for you especially if you are enjoying the no-claims bonus from your insurer.
This is exactly one of the situations that have led car insurance companies to come up with short term car insurance coverage for their customers. This type of coverage provides insurance to additional temporary drivers and can cover even an overseas visitor. It can also give much needed financial protection for additional cars that you will be driving temporarily. This can even be obtained if you have just bought a car, so that you can immediately drive home the vehicle. Just be reminded that this type of insurance requires the driver to have a full and valid license. And in most cases, the driver has to be 24 years old or older before he or she can be allowed to buy this coverage. Speak with your car insurance agent about this just to be sure of the rules and regulations regarding short term car insurance coverage.