Commuting with a friend's car, and my wallet.

October 22, 2007 10:21 AM

I'm going to be temporarily using a friend's car to commute. The concern is that my friend only has minimum liability insurance. I think I'm a safe driver and all, but I'd prefer for any potential accidents or damage to involve only myself, my wallet, and my insurance - and for my friend to get off scot-free. What do I need to do? This is in CA.

In addition to placing it under my insurance, do I re-register the car with DMV under my name, temporarily, before switching back ownership to my friend? What else do I need to know?

Standard disclaimer, you are not a lawyer, all advice will be fully researched before taken, all advice is anecdotal, etc., etc.

posted by Xere to travel & transportation (4 comments total)

Have you called your insurance agent to see about coverage?
posted by TedW at 10:30 AM on October 22, 2007

Your car insurance will generally cover you driving someone else's car. But you need to check your policy. If you don't have a policy, you can purchase a three- or six-month policy from anyone at the standard rates.
posted by Cool Papa Bell at 10:38 AM on October 22, 2007

Disclaimer: IAAIA, but not yours, and I am not licensed in CA.

Generally, your insurance will cover you driving someone else's car. However, you cannot put the car on your insurance if it is not in your name, because legally, you cannot insure what you do not own.

I don't recommend registering it in your name, and then in his. For the most part, DMV charges a fee for this, and your state may have you pay taxes on it. In this case, it would be all that x2. Not to mention those oh so lovely trips to the DMV.

Additionally, if something were to happen, and your insurance covered damage above and beyond what he has, his insurance would still be affected. Any accident you have driving someone else's vehicle is called a lending loss, and can be a severe black mark on his policy (think higher rates).

Look into your friend adding you to his policy, and if it makes you comfortable, him adding collision coverage, and you pay him the difference. You would be covered, he'd still retain legal ownership of the vehicle, and if something happened to you while driving it, it would not be a lending loss on his policy.
posted by sephira at 11:06 AM on October 22, 2007

When I recently rented a car and the agency tried to sell me the damage waiver, I called my insurance agent and found that if I'm driving someone else's car, damage to that car is covered under property damage which has a zero deductable (as opposed to the collision policy on cars actually registered to me). This is in Texas fwiw.

If this is the case with you, you don't have to do anything; you're covered.
posted by Doohickie at 11:53 AM on October 22, 2007