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You need to read your insurance policy now or have someone look at it quickly. Some policies state that no coverage exists if you loan a vehicle to someone that is not licensed, that you know is not licensed, or that you should know is not licensed. This means that you could have to pay for the accident out of your pocket. Be very careful with loaning vehicles. I recommend that my clients not loan vehicles because you are also loaning your insurance and you insurance record. State to State laws vary as well so you will want to check state law as well. For full disclosure, I own and operate a small Independent Insurance Agency in Gordon, Georgia and have for 22 years. I also worked as an agent for a direct writer for 3 years before that.

You should also be aware that in the situation you described the car may be impounded adding impound fees to your out of pocket expenses.

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8y ago

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