Public Service Announcement. Check your insurance limits.

[Irving]

I don't sell, so I have no idea what stuff costs. Also,I handle more minor stuff, so I don't personally handle a lot of limits issues.

[MrPrena]

Sadly, I am under -insured on everything.

[Irving]

Just ran into something new recently. My insured was driving a vehicle insured by Progressive. Meaning that they were borrowing a friend's car. Insurance follows the vehicle, so when my insured was involved in a wreck, Progressive would be the insurance company handling the claim. Most policies state that if you are driving someone else's vehicle, your policy will provide excess coverage over all other collectible insurance. What that means is that if the vehicle you were driving turns out to not be insured, so no other collectable insurance, then your policy will step in and provide coverage based on whatever coverage you have.

In this case, the Progressive policy specifically states that if an unlisted driver is operating the vehicle, then the policy becomes secondary (excess) to any other collectable insurance. Since my policy is automatically excess, because we don't insure the vehicle, now there are two excess policies in effect. Basically it boils down to that my policy and the Progressive policy will spilt this claim, even though the Progressive policy has collision and liability coverage for the vehicle.
Progressive does this to save money so they aren't paying for the actions of a driver that is not a listed driver on the policy. This is something to be aware of, as if you have a policy with this wording, you may feel differently about letting people drive your vehicle. Similarly, you may be more way of borrowing someone else's vehicle as well.

This is the first time I've run into this situation and I thought I'd share. I've heard that Safeco has similar wording on some of their policies as well. Just a heads up.