817-485-5050 info@schwabagency.com

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What to know about your auto insurance before lending out your car.

When you let a friend borrow your car, you might assume that their auto insurance will be the primary coverage.  However, in most states, including the state of Texas, this isn’t usually the case.  This is because insurance laws dictate that auto insurance follows the vehicle rather than the driver.  So, before you lend out your car so freely, here are some of the things you need to consider about your coverage.

Because the car owner is financially responsible for the damages caused by their vehicle, it’s important that you know your coverage limits before you lend out your car.  In some cases, your auto insurance policy may impose lower coverage limits when your car is being operated by a driver not listed on your policy.  Additionally, there are some instances in which your insurance will not cover another driver at all.  For example, if you regularly lend your car out to someone who is not a member of your household or if you lend your car out for business purposes, then your auto policy might deny the driver coverage.

If you frequently lend your car to someone that you do not live with, then you should add this person onto your auto insurance policy as an additional insured.  You should also take this step if you are lending your car out for an extended period of time.  This way, you can ensure that the driver has the coverage that they need.

This is how insurance works when you lend out your car.  Do you have additional questions regarding your auto insurance?  If so, then contact the experts at The Schwab Agency in Colleyville, Texas.  We are ready to assist you with all your coverage needs today.

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The Schwab Agency

COVID-19 Update:


Due to new increasing cases of Covid-19 our office will be closed to the general public until further notice. Our team will still be working full-time in the office and here to assist with all your insurance needs. Please contact us via phone at (817) 485-5050 or email: info@schwabagency.com.


We hope everyone is doing their part to protect themselves and their loved ones during these hard times, and thank everyone for understanding our decision to do our part to help protect our staff and those in our community.


Tim Schwab.
President and Managing Partner