How does insurance work with a loaner car?

Your loaner car is specifically covered under your policy. However, your policy will only pay for damages that exceed the coverage on the garage’s loaner. So the loaner is primary and your policy would respond if needed.

What happens if you get into a crash with a rental car?

If the accident was your fault, you’re responsible for damage to the rental car and for any liability issues. In the event you are not at fault, your rental company will work directly with the other driver’s insurance company. Note that it is usually illegal to drive a rental car without any insurance coverage.

What happens if you damage a loaner car from a dealership?

It is relevant to inform the insurer of the accident. If you have someone else’s car under your control, you are in principle the one who is responsible. If you cause damage to a loaner car, this often means that you have to pay compensation for this damage. The owner of the car can recover the damage from you.

Who is liable for a loaner car accident?

Situationally the answer could vary. But, in most instances the dealer’s insurance will be primary & handle the claim (s). The liability caused by your mistake, the damage repair to the loaner car & the repairs to the property you damaged.

Do I have to have insurance to cover a loaner car?

Whether or not your own insurance must cover the loaner car depends upon the contract signed. Some dealers provide primary coverage (usually statutory minimum), others provide excess coverage only. Read your contract. As to who “must pay” depends upon the facts of the accident and determination of legal liability.

What happens if a friend borrows your car and crashes it?

If a friend borrows your car and causes an accident, your insurance policy pays for any at-fault damages. A rule of thumb to remember in this situation is “car insurance follows the car, not the driver.”

What happens if you sign up for a loaner car?

Be careful what you sign when the give you a loaner as you may be accepting liability when you shouldn’t. Your personal auto liability and collision coverages are primary. In a case where the primary carrier’s liability limits are insufficient the dealer’s coverage would then pay the difference.