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I just had an accident in a car which I borrowed from a friend. I know my liability insurance should cover repairs but will it also cover the difference in premiums he has to pay because of the accident? Up until my accident, my friend was accident-free and paid a very low premium for his car insurance. Now he has to pay more.
Hi there,
Coverage for damages to vehicles you drive which do not belong to you can be added to personal liability insurance. Check your policy to see if you have this coverage.
If you cause an accident while driving a car which belongs to someone else, this coverage will normally compensate for the difference in the premiums which the owner must pay due to the loss of accident-free discounts.
Best regards from Moneyguru
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