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Lesson to be learned: ALWAYS say no.
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After reading most of the post here, I feel I have to clarify my earlier post, repeated above. I was not referring to any financial risks you exposed yourself to. I was referring to the stress you've inflicted to your friendship.
With that said, let me offer a different position than what's so prevalently posted. Your friend shares a very large portion of responsibility for what has happened. After all, it is
HIS snowmobile. He did offer to let you drive it. He didn’t made you take out supplemental insurance before hand. And I bet he didn't even mention, "if you wreak it, you’ve bought it." Your friend assumed the risk that something bad might happen the minute he offered you control of the sled.
This is exactly why your friend is wise to have insurance. He's just got to decide if it behooves
him to use his policy to cover
his loss. After all, what would he do if he balled it up? Would he make a claim? I bet he would. Otherwise, why have it insured?
Your offer to cover his deductible is most magnanimous. If I were your friend, I'd take you up on the offer. Then I'd file a claim and hope for the best. And never again would I offer anyone the use of my transportation. After all, your freindship has a certain value.
...There are three things you should never offer someone else the use of: Your wife, your car, and your underwear.