This is a good question and one that is asked very frequently from consumers. In most states the auto insurance follows the vehicle. So if you loan your vehicle to a friend it will, in most cases, be your insurance policy to pay rather than your friends if your vehicle is determined to be at fault in an accident.
A few thoughts that come to me……….
1. Are you willing to be responsible for paying your collision deductible in order to get your vehicle repaired.
2. If the damage or injuries your friend causes exceeds the coverage you carry on your policy…..legal action could be coming against you as the owner of the vehicle and the insured person on the policy.
3. Does your friend have a good driving record or is he or she possibly a higher risk than you consider yourself to be?
4. If someone has frequent use of your vehicle most insurance companies require you to list them as a driver on your policy.
There are many other things to consider other than the few I pointed out and I am certainly not here to tell you wheather to loan out your vehicle or not. That is obviosly your decision to make. My hopes are simply to equip you with a few thoughts you might consider as you make your decisions.
All the best,
Jeff