Re: return of stolen audi

[Scott Fisher <sefisher@cisco.com>]

Todd Young writes:

> Two different situations here.
> First case, you gave your permision for a private individual to 
> drive your car, usually the insurance follows the car, so your 
> insurance will apply to any accidents.

Whether you are the lender or the borrower, this is worth checking
before you lend or borrow a car, as it may vary either from state to
state and probably from insurer to insurer.

We needed to find the details on this exact situation when I borrowed
the '83 Audi that I eventually ended up buying from my friend.  Because
California is among the states where the police ask for proof of
insurance when they stop you for any other reason, we needed to know in
advance what our insurer would do.

As it turned out -- for California and for our specific policy with AAA,
our insurer (your state's laws and your specific policy may vary) -- I
am insured in any car I drive, even if I borrow it from someone else, at
least for liability and collision.  I am *not* insured for comprehensive
in a car I borrow.

What this means:

If I borrow your car and run into a little old lady, my insurance
company (plus my deductible) pays her, and yours never needs to know.

If I borrow your car and run into a signpost, my insurance company (plus
my deductible) pays you, and yours never needs to know.

If I borrow your car and it's stolen and/or totaled, my insurance
company says "sorry!"  Now, I *personally* would say that it was my
responsibility since I borrowed the car, but many people may try to push
it back onto the car owner's insurance.  

Two other places that you may need to know about are while test-driving
a vehicle prior to purchase, or between purchase and adding the new car
to your insurance policy.  My policy covers me explicitly for 30 days
after the date of transfer of ownership (hmmm, or is it the bill of
sale?  I'm not sure...), without me having to notify the insurer.

And no, fortunately I've never been in an accident either on a test
drive or on the way home from buying a car... but it's worth finding out
what YOUR insurer will cover YOU for before you find out the hard way.

--Scott Fisher