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Accident in a Borrowed Car: Whose Insurance Pays?
When someone crashes a borrowed car, the owner's policy usually pays first. How permissive use, collision, and the borrower's own policy typically fit.
This short video is a summary of our explainer Accident in a Borrowed Car: Whose Insurance Pays When a Friend or Family Member Crashes Your Car?, which covers the details, the steps to take, and how auto insurance typically handles it.
Transcript
If someone has an accident in a borrowed car, insurance usually follows the car. In most states the owner's policy pays first when the borrower had permission to drive. The borrower's own policy may apply as excess if the owner's limits are not enough. Collision coverage on the owner's policy usually covers damage to the car, minus the deductible. Household members who drive the car regularly should be listed on the policy. Rules vary by state.
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