On the PAP, under Who is an Insured, the driver is covered with permitted use. Therefore, if the owner of a vehicle allows a friend to borrow his auto and the friend gets into an at-fault accident, the owner's insurance will pay.

But does the insurer have the right to subrogate against the friend for damages? Also, would the friend's auto policy cover physical damage to the owner's car if the owner decides not to submit a claim to his insurer?

Lastly, it is our understanding that if the owner does submit a claim to his insurer, it would not be considered a chargeable accident. Is this correct?

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