Reader’s Question:

My friend here in Houston, Texas, occasionally borrows my car. Do you think I should add him under my car insurance policy?

Betty

Houston, TX

It is highly recommended that you do two things: add your friend under your auto insurance policy as an “occasional driver”, or have your friend get a Non-Owner’s insurance policy under his name. In any case, it would not be wise to allow your friend there in Houston (or anyone, for that matter) to drive your vehicle without adequate auto insurance coverage. Also, under the financial responsibility laws of Texas, anyone who drives a vehicle (not necessarily the owner alone) is responsible (and is required to) acquire appropriate financial coverage in the form of auto insurance. The purpose of this law is to make sure that anyone who causes injury or damage to others during a car accident is able to provide the necessary monetary compensation.

In case you’re wondering, a Non-Owners Auto Insurance usually only provides liability protection, meaning that it will only protect you or your friend from having to pay large sums of money when he caused a car accident while driving your vehicle. So if your vehicle is damaged or totaled, it will be under the discretion of your auto insurance provider whether to reimburse you or pay for repairs. Also make sure you have enough collision and comprehensive insurance coverage if you will have someone else you’re your vehicle. You don’t want to regret not taking these steps to protect you if your friend end’s up totaling your vehicle.