Understanding Guest Drivers and Your Car Insurance
Lending your car to a friend is a favor that can backfire. Here are the answers to the most frequently asked questions we get about guest drivers at High Favor Insurance from Birmingham, MI, and all over Michigan.
Whose Policy Covers a Friend I Let Drive My Car?
Your policy provides liability protection for your car if:
- Your friend is a licensed driver.
- They have a Michigan license.
- You give them permission to drive your vehicle.
- Your car is registered and licensed in Michigan.
- The guest driver is not specifically excluded from your policy. Your agent can confirm whether they are or not.
Because Michigan is a no-fault state, their policy covers your car when:
- Your guest driver has a Michigan license.
- They maintain or are included in a Michigan auto insurance policy for their own car.
- Your policy does not otherwise apply.
Situations to Avoid
The situations you want to avoid are:
- Lending your Michigan-licensed car to someone who lives in an at-fault state, a state with a different kind of auto liability.
- Lending your car for out-of-state travel.
- Lending your car for business activity, such as an errand for a home office, Uber or Lyft, commercial hauling, or visiting clients. In this case, commercial coverage is necessary. Neither your nor their personal policy would pay.
It is always a good idea to contact your agent at High Favor Insurance before lending your car.
High Favor Insurance is your one-stop source for all of your insurance needs in Birmingham, MI, and the state. Call us today for the coverage you need!
