Liability Ins for borrowing a car?

[Mycroft]

As full time cruisers, we don't have a vehicle. But I can see a time where I might want to borrow a marina car or the car of a friend. Since we don't have auto insurance that would normally cover us, we would be totally not covered liability-wise.

Has anybody found insurance for this type of thing?

[a64pilot]

If in the US, the car has to have liability insurance, either your friend or the Marina pays.
Initially I will have auto insurance with USAA as my Daughter will drive on of our cars in College. I want it for rentals, the insurance bought through them is I believe more than the car rental sometimes.
My plan is to call USAA, this has to be a solved problem.


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[Cheechako]

I think the first in line for lawsuits is the owner of the vehicle. But you could have liability too. If you don't have a car and don't have insurance, be aware that you can be lumped into the "previously uninsured" category when buying insurance again, this is where the 16 year olds and the DUI people are. High priced. You are often better off keeping your insurance and putting it in abeyance..... meaning it's "on hold" for about $20 a year. You can activate it with a phone call I think.

[sailorboy1]

We are going to be listed as drivers for our daughters car. This provides us liability for rentals etc.

[Mycroft]

Thanks guys.

Cheechako, where were you back in May when I got rid of my car and CANCELLED my insurance?! Oh well, water under the bridge. I called my ex agent and they're going to get me a quote for "broadform" coverage attached to my license that should cover personal liability. It doesn't cover comprehensive, but compared to medical, car damage is cheap.

True, most cars will already have comprehensive and liability coverage paid for by the owner of the car. However, many times, the owner only has the minimal coverage required by law. Even if there is enough coverage for the accident, the owner's insurance company can still sue me for personal liability if the accident were deemed to be my fault.

It was a recent Active Captain newsletter that got me thinking along these lines.

[Alchemist 66]

You can look into non-owner car insurance. I know my insurance company (GEICO) carries it. The primary reason I'm considering carrying that insurance once I begin cruising full-time (and thus not owning a car) is not so much for insurance when I rent a car. Rather it will provide a history of continued insurance coverage. That way, when I do finally buy a car again, I will not be put in the "non-insured" category and have to pay extremely high rates.

[FSMike]

If you borrow my car my liability covers you. I would think that is the case with most casual borrowing situations.

[Paul L]

USAA offers a non-owners car insurance policy for reasonable.

[Mycroft]

Originally Posted by FSMike

If you borrow my car my liability covers you. I would think that is the case with most casual borrowing situations.

And if the car owner's liability coverage is too low?

[Octopussy]

I second Paul L's remark. We have USAA and are getting ready to get rid of our car and cast off the dock lines. They recommended we carry a non-owner policy. It's reasonably priced, gives us liability insurance, and will help us maintain car insurance so that in the event we become landlubbers again, we will not have a problem getting car insurance (which, I guess can be a problem if you haven't had it for a while, according to USAA).

Hope this helps!

Cheers,
Octopussy

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[FSMike]

Originally Posted by Mycroft

And if the car owner's liability coverage is too low?

Lmao! Too low for who? If this is a problem don't borrow a car from a poor person, just go out and and rent one or buy one.

[Mycroft]

Most auto owner's liability covers only $25,000 for medical, pain, etc.

[wrwakefield]

Originally Posted by Mycroft

As full time cruisers, we don't have a vehicle. But I can see a time where I might want to borrow a marina car or the car of a friend. Since we don't have auto insurance that would normally cover us, we would be totally not covered liability-wise.

Has anybody found insurance for this type of thing?

Mycroft,

You bring up something similar to what we are just having to deal with; we are in the final stages of selling our Fairbanks home and will therefore loose the personal liability umbrella policy we have had for so long. [We still have auto coverage, however, so this is related, but also different...]

While we have auto liability coverage [what you are asking about] and boat liability insurance [which covers us while on the boat, or happenings caused by the boat...] we also want to maintain a personal liability umbrella policy that covers us for everything else. [It also covers if auto liability thresholds are exceeded.]

Our solution: We insure the boat through Al Golden at IMIS, and they also provide personal liability insurance- something we will have them add once the house sale is final.

I suspect other insurance companies [marine and otherwise] may also provide personal liability [i.e., not related to happenings on or by the boat...] coverage as well.

I mention this in case anyone else wants to boost their personal liability coverage beyond what happens in boats or cars, or wants increased coverage over the smaller amounts in a typical auto policy. [IMIS mentioned they provide this coverage for liveaboards as well.]

In case this is of interest.

Best wishes finding what best suits your needs.

Cheers! Bill

[buzzstar]

Short answer: It depends. In the U.S., it depends upon the state. Internationally, maybe the country, or maybe a political subdivision of the country. Laws differ. In California, which is not a "no fault" state, the insurance goes with the vehicle, but this does not mean it does everywhere. Also remember, it is only in some places that all cars are insured; it is definitely not everywhere.

I liked the suggestion about investigating coverage for borrowed vehicles. If you go that route, find out where it applies. As a nearby example, which could affect you if you head south, Mexico requires insurance from a Mexican carrier. Perhaps the safest route is to rent the vehicle through a reputable international company (e.g., Hertz, and many others) and buy their coverage (often expensive). You might also contact underwriter of one of the recommended companies about the applicable laws in the places you hope to visit and borrow a vehicle.

Have fun, and keep in mind that too many details and concerns can interfere with that.

[Rock-Head]

Thinking out loud & outside the box a bit: call an insurance broker. Auto insurers may not be the best place to get a liability policy for your specific situation.

:2pennies: