Along with your home, your car is probably your biggest investment. Because of the cost of automobiles and the liability that comes with them, you might not want to let people borrow your car. Before you give up the keys to your car, there are a few important things to consider.
If you do decide to loan your car to a friend or family member, you might want to consider adding a dash cam. This will help protect you from issues that could arise while you aren’t behind the wheel. These are a few things you should know before loaning your car.
Your car could be involved in a crime
While you think you might know your friends or family members, you do not always know what they do when you aren’t around. When you loan your car, you take the risk of your car being involved in a crime. Hopefully your family or friends will not use your car as the getaway vehicle in a bank robbery. But, your car could be involved in a hit-and-run accident or another traffic-related issue.
Even if you were elsewhere when the crime was committed, the fact that your car was involved could drag you into the issues. If you don’t loan your car, you will not have to worry about legal issues related to it.
Your car could be damaged
When someone else drives your car, there is a chance that the car may not return in the same state it was in when you last saw it. You might park far away from entrances to avoid getting door dings, but the person who is borrowing your car might not care. If you are behind the wheel when you car is damaged that is one thing, but someone else damaging your car can be especially problematic.
- You could be responsible for parking fees
The license plate on your car is tied to your name and address. The person who is driving your car might have collected parking tickets and not told you. So, when those arrive in the mail, you will be responsible for them. If you didn’t know about them, they may have accrued added fees. This might not seem like a big deal, but parking tickets can catch up with you, especially when it comes time to renew your driver’s license.
Your insurance might not cover another driver
Your insurance coverage might not have coverage for a driver who does not live in your home. If something happens to your car while someone else is driving it, your insurance might not cover the damage. The borrower might not have car insurance, which could create a big problem. If the borrower does not have a driver’s license, then you can be certain that your insurance company will not pay for damages. You might have to pay for repairs out of pocket and your insurance company might drop you because of the risk you took loaning out your car.
