Auto Insurance Claims: Auto Insurance Coverage Borrowed Vehicle, auto insurance coverage, policy coverage

Question
A friend borrowed my car and caused $5,000   damages.  Will his auto insurance cover his accident (loss) or will they force my carrier to cover it?  I'm afraid this will escalate my commercial policy for the next five years which would be astronomical.  I had a perfect record.  Help!

Answer
Hi Todd,
Under Insurance Law in all states, the owner of the vehicle and his insurance policy are the first responsible parties, no matter who the driver might be or the amount of his own coverage.  If the accident is so major that it exhaust your policy coverage, then your friends policy stands in the background as extra protection.
Most companies will not increase your rate unless the driver was a named driver on your policy.
You and your friend will need to report this accident to your company.
I hope this has been of help.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area 12-11-07 9:30 PM PST