Shared Wheels: Knowing the Auto Insurance Implications in South Carolina

Lending your car to a friend or family member in South Carolina might seem like a simple gesture, but it comes with legal and insurance implications that every car owner should understand. Whether you’re considering loaning your vehicle for a short errand or an extended trip, it’s essential to be aware of how your auto insurance policy applies in such situations. In this blog, we’ll delve into the nuances of auto insurance when lending your car in South Carolina, equipping you with the knowledge to make informed decisions and protect yourself from potential risks.

Understanding Liability Coverage:

When you lend your car to someone else in South Carolina, your auto insurance policy typically extends coverage to the driver, provided they have your permission to use the vehicle. However, it’s crucial to note that liability coverage follows the car, not the driver. This means that if the person borrowing your car gets into an accident, your insurance policy would generally be the primary source of coverage for any damages or injuries caused.

Exceptions to Coverage:

While lending your car may seem straightforward in terms of insurance coverage, there are some exceptions and limitations to be aware of. Additionally, if the person borrowing your car uses it for purposes not covered by your policy, such as commercial activities, your insurance may not apply.

Optional Coverages to Consider:

To mitigate potential risks when lending your car in South Carolina, consider adding optional coverages to your auto insurance policy. For example, adding uninsured/underinsured motorist coverage can provide additional protection in case the person driving your car is involved in an accident with an uninsured or underinsured driver. Similarly, personal injury protection (PIP) coverage can help cover medical expenses for both the driver and passengers in the event of an accident, regardless of fault.

Steps to Take Before Lending Your Car:

Before handing over the keys to your vehicle, there are several steps you can take to protect yourself and ensure that you’re adequately covered by your auto insurance policy:

1. Review Your Policy: Take the time to review your auto insurance policy and understand the extent of your coverage when lending your car to someone else.

2. Confirm Permission: Make sure that the person borrowing your car is authorized to drive it and has a valid driver’s license.

3. Consider the Driver’s Record: Assess the driving history and experience of the person borrowing your car to gauge their level of risk.

4. Communicate Expectations: Clearly communicate any expectations or restrictions regarding the use of your vehicle, such as limitations on mileage or designated drivers.

5. Keep Documentation: Maintain records of who borrows your car, when, and for what purpose, as this information may be helpful in case of an insurance claim.

Conclusion:

Lending your car in South Carolina can be a convenient and helpful gesture, but it’s essential to understand the implications for your auto insurance coverage.  Taking proactive steps and communicating openly with the borrower can help mitigate risks and provide peace of mind for both parties involved.

Here When You Need Us

Whether you’re looking to update your current policy, explore new coverage options, or simply have questions about car insurance, O’Neal & Associates Insurance is here to help. 

Contact O’Neal & Associates Insurance at 478-788-1104 or request an online quote right now!