Here's why:
* Liability insurance covers damage you cause to others. It doesn't cover damage to the vehicle you're driving.
* Most insurance policies only cover the named insured and their household members. If you're driving a car that isn't registered to you, your insurance may not extend coverage.
* The loaner vehicle owner likely has their own insurance policy. This policy would be the primary coverage for any damage to the vehicle or injuries caused by the driver.
What you should do:
* Check your own insurance policy. Look for details about "non-owned vehicle coverage" or "rental reimbursement coverage."
* Contact your insurance agent. They can clarify your coverage and advise you on the best options for your situation.
* Ask the loaner vehicle owner about their insurance. They should have coverage that will protect you in case of an accident.
It's always a good idea to be aware of your insurance coverage and to take precautions when driving a loaned vehicle.
