Top 10 Insurance Myths - incorrect

[darnovak]

One of the myths involves someone borrowing your vehicle and crashing it. It is not a myth that their auto insurance will pay for your vehicle damages. The NY personal auto policy has (In the Insurance Agreement) a definition of Temporary Substitute Auto. In Part D: Coverage for Damage to Your Auto, coverage is extended to a non-owned auto used as a Temporary Substitute Auto. So if your friend's auto policy defines the vehicle he borrowed from you as a temporary substitute auto, his policy will pay for the physical damages. Maybe other states do not have these definitions and extensions of coverage in their policies, but NY has had the temporary substitute auto coverage for many years. Perhaps the so-called experts writing the articles like the recent one involving 'insurance myths' ought to actually read some of the insurance contracts involved before they spread misinformation around.

[HarrisburgAgent]

In PA, Part D - Coverage for Damage To Your Auto, includes a definition for "non-owned auto" which reads as follows:

C. "Non-owned auto" means:
1. Any private passenger auto, pickup, van or
"trailer" not owned by or furnished or available
for the regular use of you or any "family member"
while in the custody of or being operated
by you or any "family member"; or
2. Any auto or "trailer" you do not own while
used as a temporary substitute for "your covered
auto" which is out of normal use because
of its:
a. Breakdown;
b. Repair;
c. Servicing;

So it appears that coverage is picked back up, however if you keep going, you find:

OTHER SOURCES OF RECOVERY
If other sources of recovery also cover the loss, we
will pay only our share of the loss. Our share is the
proportion that our limit of liability bears to the total of
all applicable limits. However, any insurance we
provide with respect to a "non-owned auto" shall be
excess over any other collectible source of recovery
including, but not limited to:
1. Any coverage provided by the owner of the
"non-owned auto";
2. Any other applicable physical damage insurance;
3. Any other source of recovery applicable to the
loss.

Do you have this same "Other Sources of Recovery" clause in the NY policy? If so, and the car owner has physical damage coverage of their own, the "borrower's" policy should be excess only and would never get involved. Have you had a carrier pay a claim with these circumstances? In PA, if you lend your car, you lend your insurance...

[darnovak]

My friend's auto is in the shop for repairs. He borrows my auto. He crashes my auto. I do not have collision coverage on my auto. The myth is that his policy will cover my car. It is not a myth. If his policy has collision on any of his vehicles and his policy defines my vehicle as a temporary substitute auto, it will provide the physical damage coverage. Yes, there is most likely an 'other insurance' provision in his policy which will determine if his coverage is primary or excess. The coverage is there for a temporary substitute auto. It is not a myth as per the myth article. The determination of such coverage is not a simple matter either. One must read the policies applicable noting definitions, coverages, and exclusions which includes the OTHER SOURCES OF RECOVERY found under LIMIT OF LIABILITY. The situation described in the article contains limited information. The tone of the article dismisses the existence/possibility of the friend's insurance paying for the damage. This is misleading as there are circumstances under which the friend's policy would pay for the damage. My original post in another site was that this was a poor example for a myth. Car insurance is not a 'vending machine' product and I have no doubt the 'temporary substitute auto' definitions and coverages may not be found in many policies that are written in NY as well as many other states. Woe be unto those who act as their own broker and purchase insurance over the internet. Go to any of the sites that offer personal auto insurance and see if you can obtain a specimen policy to examine. Good luck.

[junevjohnson]

Another popular myth is that your U.S. auto insurance covers you anytime, anywhere. I work for https://www.mexpro.com/ and we provide auto, RV, home and other types of insurance in Mexico. Like the U.S., the Mexican government mandates insurance but many Americans believe they're covered by default, which is not true.

You need Mexico car insurance because it's required and US /Canadian insurance coverage stops at the Mexican border. MexPro can help!