A friend asks to borrow your car while they are in town.  Is it a safe idea to do so? Maybe. 

In Oregon, Car insurance typically follows the car rather than the driver. This means that the insurance coverage primarily applies to the vehicle itself, regardless of who is driving it. As long as the policy is active and the driver has permission to use the vehicle, the insurance should provide coverage for any accidents or incidents involving that car. However, it’s important to note that there can be exceptions and variations depending on the specific terms and conditions of the insurance policy and the laws in the jurisdiction where the incident occurs. Therefore, it’s always a good idea to review your insurance policy.  The team at EPB&B  will  work with you to help you to understand the extent of coverage and any limitations to your auto policy.

Here are some examples of common scenarios to consider before loaning your car or driving another person’s vehicle.  

1. Permissive use: Many car insurance policies provide coverage for you when you drive someone else’s car with their permission. This coverage (on your own policy) is typically secondary to the primary coverage provided by the car owner’s insurance. So if the car owner’s insurance limits are exhausted, your insurance may kick in to cover additional damages, up to your policy limits.
2.  Exclusions: Some insurance policies exclude coverage when you’re driving a vehicle you don’t own. In such cases, if you’re involved in an accident while driving another person’s car, you may not be covered by your insurance policy.
3. Business or commercial use: If you’re driving another person’s car for business or commercial purposes, your personal car insurance policy may not cover you. You would typically need commercial auto insurance for such activities. This normally only applies to jobs involving “delivery” or carrying people or products for a fee.
4. Rental cars: Car rental companies often offer insurance options when you rent a car. If you decline these options and rely on your personal car insurance, it may or may not provide coverage when there are certain kinds of loss. For example, most personal auto policies do not cover potential diminished value following an accident. We always advise customers to purchase insurance from the rental car insurance at the time you rent.

Auto thefts continue to be on the rise.  According to the National Insurance Crime Bureau (NICB), 2023 was a record breaking year for auto thefts across the country, with Oregon ranking ninth with an auto theft rate of 394 per 100,000.  Criminals are using more advanced technology to find weaknesses allowing them to bypass even the most modern security systems.  While the NICB is continually working with State and national law enforcement to curb auto thefts, there are precautions vehicle owners can take to lower the chances of being a victim of auto theft. 

Here are five ways individuals can protect their cars:

• Install an Alarm System: Despite more sophisticated criminal technology, a  car alarm is still one of the most effective deterrents against theft. Modern alarm systems come with various features such as motion sensors, sirens, and even remote notification to your phone if there’s a breach. Ensuring that your alarm is prominently displayed can deter potential thieves.
• Use Steering Wheel Locks or Wheel Clamps: Steering wheel locks and wheel clamps are physical barriers that make it difficult for thieves to drive or tow away your vehicle. These devices are highly visible and act as a strong visual deterrent. Thieves are less likely to target a car with such obstacles in place.
• Park in Well-Lit Areas: Parking your car in well-lit areas, especially at night, reduces the likelihood of theft. Thieves prefer dimly lit places where they can work undisturbed. Parking under streetlights or in monitored parking lots can make your car less attractive to thieves.
• Install a GPS Tracking System: GPS tracking systems allow you to monitor your vehicle’s location in real-time. If your car is stolen, you can track its movements and quickly inform law enforcement, increasing the chances of recovery. Some advanced systems even allow you to remotely disable the engine, immobilizing the vehicle until authorities arrive.
• Hide Valuables Out Of Sight :  If you must leave something of worth in your car, keep them out of sight where they will not tempt a thief; A trunk or a locked glove box for example.  Even items that may not be valuable but could catch the eye of a criminal should be tucked away.

By implementing these measures, individuals can significantly reduce the risk of car theft and protect their vehicles from unauthorized access.