Ouch!

A friend, whose daughter is away at college, recently loaned her car to a friend. Unfortunately, the friend had no insurance, but was at fault in an accident. So, the burden of responsibility fell to my friend's insurance policy.

Personal Risk Management Tip...

Unless you intend to insure your kid's friends and their choices, it's probably worth discussing the ground rules with your kids if they're going to stay on your insurance policy.

Such risk may not be covered under a personal auto policy because the roommate's car is "available for regular use." If prohibition is not the risk management method of choice, adding the extended nonowned endorsement to the personal auto policy would also solve the problem.

~ Jon