What do I do if I hit a parked car with a borrowed vehicle that has liability-only insurance?

I borrowed my sister's vehicle and hit a parked car. I was visiting and borrowing the car, so I'm not listed on the policy. She has liability-only insurance through our parents' policy. She wants to file a claim, but I'm willing to pay out of pocket for the damage.

“Assuming you aren’t listed as an excluded driver on the policy, the insurance your sister has on her car should apply. Although it’s only liability insurance, it will cover any damages to another person’s vehicle or property. The only time you’d need to pay out of pocket is if the damage exceeds the policy’s limits.
However, since your sister doesn’t have collision coverage on her vehicle, you will need to pay out of pocket to have her car repaired.
Your family’s rates could increase after submitting a claim. Insurance companies rate policies based on a number of factors, including claims and accidents.
If you want to avoid a rate hike, you can try settling the matter privately with the other driver. You can see how much the other driver’s repairs will cost and decide what to do. “
Emily Maracle
Answered on May 07, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.

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