A Friend Wants to Borrow Your Car. Is That a Wise Decision?
Thinking about loaning your car or truck out to someone else? NOT SO FAST! Read this before you do that.
Insurance companies write your auto liability policy to cover YOU and your other “pre-screened” family drivers for “their insured” drivers. If your other drivers have terrible driving histories, you may not be able to get a high dollar limit liability coverage, and if you do, it will be at a much higher price. That is how car insurance works.
You should always know the proposed “borrowing” driver’s “status” of both possessing a valid license and being well-insured. Never allow an unlicensed driver or one with no insurance or minimal insurance coverage to operate ANY of your vehicles. If the driver has a GA license, checking his or her license status is as easy as going to the Georgia DDS website. Confirming his or her insurance coverage is not so easy.
Automobile insurance policies typically contain provisions called an unlicensed driver exclusion. Under the contractual exclusion, your insurance coverage is reduced from whatever limits you purchased (example: $250,000 per person coverage and $500,000 per accident to all claimants) to only to the extent of the state statutory coverage limits mandated by Georgia’s minimum coverage liability insurance laws, which is $25,000 unless the other driver (through his or her own policy) was wise enough to purchase his or her own uninsured motorist insurance.
If the other “permissive” driver has such uninsured motorist coverage, then your liability coverage for injured parties is not applicable at all. See cases about several situations where policy exclusions leave serious injury victims “holding the bag” in this case: Hix v. Hertz Corp., 307 Ga.App. 369, 705 S.E.2d 219 (Ga.Ct of App., 2010).
Personal injury cases may be one of the most important legal issues to ever confront you. If serious injuries or death have occurred, no amount of money will fill this gap. But, because Georgia injury law sometimes rewards the first party to file the negligence lawsuit, when multiple claimants had injury or possible fatalities, you want to put your best foot forward in court proceedings.
Call our accident injury attorneys today for a FREE lawyer consultation. The initial advice is FREE and so is the call: 1-888-986-7150, or 404-567-5515.
Our MAIN OFFICE is located at 5 Concourse Parkway, Suite 2340, Atlanta, GA 30328, but for injured clients or families who have lost a family member, we come to your home.