Whose Insurance should be used

[BigGoogle]

Jurisdiction

California

My first question is:
whose insurance should be used for the accident of a borrowed car?

I've searched online, if A borrows B's car under B's permission, then the car's owner, which is B, should use his own insurance to pay the car's damage if A runs into an accident(and A is the one hits others).

So my next question is:
If B asks A to sign a contract before borrowing the car, the contract's content is: the one driving the car should use his/her own insurance to pay the car's damage(if he/she hits others' cars), no matter who is the owner of the car.

In this case, should the one borrowing the car, A, uses his own insurance to pay the car repair fee, even though the car is borrowed from B.

 

[adjusterjack]

If B asks A to sign a contract before borrowing the car, the contract's content is: the one driving the car should use his/her own insurance to pay the car's damage(if he/she hits others' cars), no matter who is the owner of the car.

Won't work because A's policy says it is not primary.

B will have to use his own insurance because it is primary and defines A as an insured under B's policy.

And, since A was at fault, B's policy will be surcharged for the next 3 years.

Such is the risk of lending your car to somebody else.

If A damaged another vehicle and/or injured the occupants, B will be included in the lawsuit as owner of the car. If B doesn't want to use his insurance he will have to incur the cost of his own attorney to defend him.

If the lawsuit comes 6 months or a year later (as they often do) and then B decides to notify his insurance company, they will not be happy that B prejudiced their ability to properly investigate due to failure to report promptly, as is required by the policy. B could end up finding his insurance non-renewed, thus propelling his rates even further skyward.

B should report the accident to his insurance company right now. Any other course of action would be foolish.

 

[BigGoogle]

Won't work because A's policy says it is not primary.

B will have to use his own insurance because it is primary and defines A as an insured under B's policy.

And, since A was at fault, B's policy will be surcharged for the next 3 years.

Such is the risk of lending your car to somebody else.

If A damaged another vehicle and/or injured the occupants, B will be included in the lawsuit as owner of the car. If B doesn't want to use his insurance he will have to incur the cost of his own attorney to defend him.

If the lawsuit comes 6 months or a year later (as they often do) and then B decides to notify his insurance company, they will not be happy that B prejudiced their ability to properly investigate due to failure to report promptly, as is required by the policy. B could end up finding his insurance non-renewed, thus propelling his rates even further skyward.

B should report the accident to his insurance company right now. Any other course of action would be foolish.

I see, so in this case, only commercial insurance can help B avoid insurance price increases, just like people purchasing extra insurance when renting the car in Turo or other traditional rental companies?

 

[adjusterjack]

I see, so in this case, only commercial insurance can help B avoid insurance price increases,

No. Commercial insurance is also rated based on claims experience. If B has a business and has a policy that insures his business vehicles, rates can still go up based on accidents caused by people who drive his vehicles.

just like people purchasing extra insurance when renting the car in Turo or other traditional rental companies?

Not the same. When people buy the optional damage waiver (it's not "insurance") they do so to avoid having to buy the rental company a new car if they wreck the one they rent.

 

[Zigner]

Not the same. When people buy the optional damage waiver (it's not "insurance") they do so to avoid having to buy the rental company a new car if they wreck the one they rent.

Or having to pay $2,000 for new wheels (rims) when they cut the corner too close.
(Not arguing, just "expanding")