Even if you have responsible friends, accidents happen. It is important to know what you should do to protect yourself and your property, if you decide to lend your vehicle to a friend.
- Check for a driver’s license. Make sure that your friend has a license. This may seem obvious, but you may not be aware that their license was recently suspended or revoked. If your friend has an accident, your insurance may be denied.
- Sign a Borrowed Vehicle Agreement. This type of agreement is similar to what rental car companies use. A Borrowed Vehicle Agreement stipulates and outlines exactly what is expected of your friend after you hand them the keys to your vehicle. Make sure to state that no one other than the intended borrower will drive and they will not drink while operating your vehicle while it is in their possession.
- Check your friends’ driving record. You can obtain a person’s driving record through your local DMV office or online. If the person asking to borrow your vehicle has outstanding tickets, violations, or has been in multiple accidents, it is best to be cautious and keep your keys.
- Put them on your insurance. If you are sharing a car regularly with your friend, you should think about putting them on your insurance as another driver. Your insurance company is more likely to pay out a claim, if the person that you are lending your vehicle to has an accident. You can also ask them to pay part of the premium if they are going to be a regular driver.
Schaller & Thomas Family Insurance is a Phoenix independent insurance agency that is licensed in Arizona. Their experienced agents are available to assist you with insurance matters. They can help you decide what options to take if you decide to lend your car to a friend.