If you have an accident while driving a courtesy car or dealership loaner, liability and repair costs are processed through your personal auto insurance policy (or specialized policy endorsements like endorsement 27), or via the damage waiver purchased from the loaner provider. You will be personally responsible for paying any required insurance deductibles. Furthermore, just like an accident in your own car, an at-fault collision in a courtesy vehicle will be recorded on your driving history abstract, which can result in increased insurance premium rates at your next policy renewal period.
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