When borrowing a vehicle, what is typically the first source for liability coverage in an accident?

In the scenario of borrowing a vehicle and being involved in an accident, the owner's insurance policy is typically the primary source for liability coverage. This principle is based on the concept of "permissive use," where the insurance follows the vehicle rather than the driver. When a driver operates a borrowed vehicle with the owner's permission, the owner's insurance is designed to cover any liability that arises from the use of that vehicle.

If the owner's coverage is insufficient, then the driver's personal insurance policy may come into play as secondary coverage. The nuances of this can vary by state and policy, but the foundational concept is that the insurance associated with the vehicle being operated is considered first when determining liability coverage in an accident.

In contrast, while the driver’s personal insurance policy and the borrowed vehicle's insurance can provide important protections, they generally do not take precedence over the owner's insurance when indicating liability coverage during such incidents.