Sometimes merely qualifying for car insurance is not enough. Yes it’s great to have a policy that covers you and your vehicle in case of an accident or theft, but when you are not driving all those scenarios are thrown out the window. Here’s why?

Let’s say for example, somebody borrows your car and is involved in an accident. The individual who drove your car did not have a driver’s license. The car insurance company is not obliged to pay for the damages, putting you in a disaster of a situation.

Your car is obviously worth a lot of money. However, the insurance is completely thrown out the door if you are not operating it in case of an accident. The coverage then turns into the new driver’s hands and his or her policy. If they do not have one, well then, you’re in a lot of deep trouble.

Also make sure the person not only has car insurance, but that it is also active. Having insurance and having active insurance are two different things. Active insurance means the policy holder is up to date with payments and has not avoided any payments.

Insurance companies do not react kindly to missed insurance payments by their clients. Drivers who have taken out a policy for their car and failed to pay the premiums are not insured. If the car is stolen or involved in an accident, the insurance company will not pay out.

I do not want to discourage you from providing your friends with a friendly gesture, but your car means a lot to you. It’s your primary form of transportation and worth a lot in value. However with one small mistake by a friend who is not insured and your car will only be back on the road, paid entirely by yourself.

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