Is it OK to Drive a Loaner Vehicle While Your Car is in the Shop?

Experiencing issues with your car can be unsettling and inconvenient, I mean let’s face it, who likes to be without a car? Not many! If you reside within the Utica area, many service shops will provide you with a loaner while your car is being worked on. 

Even though driving a loaner car allows you to still go about your day and go to work or the store, there’s always the thought, “What happens if I get in an accident with this car?” This thought can be nerve-wracking as you might not be sure about whether you’re covered under insurance. The insurance and liability will vary since this car is the property of the mechanic shop. 

Let’s look at your Family Auto Policy for some answers…

You Hurt Someone in an Accident with the Loaner and/or Damage Their Property

Paying for your car insurance is a costly expense, but knowing what you’re paying for will allow you to know what is covered and what isn’t. Since all policies are different, the liability limits will differ based on who your provider is.  

When it comes to liability, New York State Auto Insurance policies state that they will pay “…bodily injury or property damage caused by accident and arising out of the ownership, maintenance or use of your car or any non-owned car.”  With that being said, you would qualify for coverage under a “non-owned” car or “your car.”

What is considered a “non-owned” car or “your car”? While it may seem explainable, it’s not what you think. Normally you’d think that the loaner would fall under the category of a “non-owned” car, but tucked away in your policy is the definition of “your car,” meaning that you will be covered for a substitute. Since you don’t own the loaner, it’s considered a substitute car and will be covered through your policy if anything were to happen. 

Although to qualify for this type of coverage, your car must be in the shop and undriveable. If you drive a loaner just because, and something happens to it, you won’t be eligible for this coverage. 

That’s it! Your loaner car is specifically covered under your policy. However, your policy will only pay for damages that exceed the coverage on the garage’s loaner. So the loaner is primary and your policy would respond if needed.

What About an Accident and Damage to the Loaner Itself

Accidents are often unpredictable, well, at least for the most part. If you’re the reason an accident occurs, e.g. texting, being distracted, or driving too fast, you will be the one at fault for the occurrence of the accident. If that’s the case, you’ll be able to tap into your Physical Damage insurance and get coverage for a loaner car. With this policy, you may still need to pay for expenses that are not covered through the mechanic’s car insurance policy. 

Knowing that you have coverage through one of the service shops in the Utica area will give you peace of mind. Always review the policies and what coverage you’re eligible for first before accepting the loaner, but most likely, you’ll have the proper coverage. As always, call us with any questions or concerns you have. We are here to help you and relieve any stress regarding your car insurance! 

Until next time,
Your SZW Team

Scalzo, Zogby & Wittig, Inc. is your New Hartford area independent insurance agent. Call us for a quote on insurance for your home, car, business, or life at 315.792.0000. Or request a quote here.