What happens if you let a friend borrow your car and they get into an accident? The good news is that your car insurance company will likely pay to repair your vehicle if it’s involved in an accident while someone else drives it. The bad news? Your insurance rates will increase.
But the main factor of whether your insurance will pay is whether the driver has permissive use. Keep reading to learn what permissive use is and how it works when it comes to car insurance.
- Car insurance covers other drivers regardless of who’s driving the car at the time of the accident as long as the driver uses it permissively.
- Your insurance policy may not cover the car damage if the person driving your car is listed as an excluded driver on your car insurance policy.
- You might need non-owner car insurance if you don’t own a car but borrow cars frequently.
- A car insurance policy covers you if someone steals your car and gets into an accident.
Am I responsible if someone borrows my car and gets in an accident?
If you allow the other person to use your car, your insurance company should cover the liability expenses caused by the accident. If the accident maxes out your liability limits, the driver’s car insurance will come into play. If your car insurance is used to cover an accident, your rates will go up.
Your bodily injury liability and property damage coverage will pay for damages or injuries that others sustained up to the limits of your policy.
Does car insurance cover other drivers?
Yes. Car insurance policies follow the car — not the driver behind the wheel.
So, typically your car insurance covers other drivers regardless of who’s driving it at the time of the accident as long as the driver has permissive use. Permissive use means that you permit the person to drive your car.
When does car insurance not cover a person driving your car?
There are times when an insurance company may not cover car damage when another person is driving your car.
For instance, you may not be able to file a claim if:
- The driver doesn’t have permissive use
- The person is listed on your car insurance policy as an excluded driver
Here are other examples of when an insurance company may not cover you or you’ll have to pay a higher deductible if someone gets into a crash while driving your car:
- “Named-driver-only” insurance policies cover only those listed on the car insurance policy and don’t extend coverage to permissive users.
- “Step-down” insurance policies lower liability coverage to your state’s minimum requirements for permissive users, even if you pay for higher limits.
- Double deductibles for collision claims when a non-named driver is at the wheel.
- Insurance policy coverage won’t extend to a rental car.
Another thing to remember when you lend your car is that if your friend gets into an accident with your car and you file a claim, your rates will increase because your car insurance policy covers the vehicle. But if someone else gets a ticket while driving your car, the infraction will be charged to the driver because he operated the vehicle.
Why insurance follows the car and other questions answered
Can you get car insurance if you don’t own a car?
If you don’t own a car but borrow someone’s car frequently to get around, get a quote for non-owner car insurance. Non-owner coverage doesn’t insure a vehicle, so it’s cheaper than standard car insurance. It’s a great option for people who borrow others’ cars frequently, rent cars or need to maintain continuous coverage.
If I loan my vehicle to someone who causes an accident, will my insurance cover their injuries?
Liability insurance never covers your own vehicle or passengers. If the person driving your car is at fault in an accident, your liability insurance will pay for the damage and injuries to the other driver. Medical Payments coverage or Personal Injury Protection would cover the driver’s injuries up to a specific limit, regardless of fault, if you have those coverages.
Does my car insurance cover other drivers if my car gets stolen?
Full coverage car insurance covers you if someone steals your car and gets into an accident. Your car insurance rates won’t increase since you didn’t permit another person to drive your car and had nothing to do with the damage.
How do I file an insurance claim if a person driving my car causes a crash?
Your car insurance is generally the primary insurance that will pay for damages and injuries your friend caused if you allow them to drive your car.
Your collision coverage will handle damages to your car, but you have to pick up the deductible. Liability insurance covers the other driver’s medical bills and damaged car.
Your friend’s auto insurance will kick in if the car accident caused damage and injuries above your coverage level.
If someone else crashes your car, you should follow the same claims process:
- Get driver information from others involved in the crash.
- Take photos of the damage.
- Report the accident to your car insurance company.
The insurance company will investigate the claim and notify you of the decision.
Your auto insurance will likely cover damage if your friend gets into an accident with your car, but that doesn’t mean you should hand over the keys. Make sure you’re comfortable permitting someone else to drive your car and that you can trust your friend to drive carefully.
Do I have to add someone to my policy if they drive my car frequently?
Insurance companies often require that all regular users of a vehicle be listed on the policy to ensure that all potential drivers are covered under the policy’s terms. Adding a driver to your policy lets your insurance company properly assess the risk level of insuring your vehicle. Factors such as the additional driver’s age, driving history and credit score can influence your rates.
Will my insurance go up if someone else was driving and caused an accident?
Yes. If your insurance policy pays out to cover an accident, your insurance will go up.
The bottom line
Only allow responsible drivers to borrow your car. If you lend your vehicle frequently, make sure the driver has some kind of car insurance coverage. Finally, if you have teens in your household, make sure they’re listed as a driver on your policy — and consider umbrella insurance as a supplement to your car insurance coverage.
Frequently asked questions
What if someone took my car without permission and had an accident?
If someone took your car without your permission and got in an accident, you or your insurance would not be responsible for the damages that person caused to other people. Your insurance typically only covers drivers you permit to use your car.
What happens if a child takes the car without permission and causes an accident?
If your child takes your car without permission and causes an accident, you can ask your insurance company to pay for the damage. However, this may mean that you have to file a police report against your child, and you may still be responsible for paying for the damage as their parent.
Does insurance cover someone who drives your car without insurance and gets into an accident?
If the person you let drive your car does not have insurance, they cannot help pay for damage if there is an accident. Your insurance company will still cover the driver, but you may have to pay for the rest if the damage exceeds the policy limits.
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Laura Longero
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Laura Longero is an insurance expert and Executive Editor at CarInsurance.com, where she specializes in helping consumers navigate the complexities of the financial and insurance industries. She has 15 years of experience educating people about finance and car insurance. Prior to joining CarInsurance.com, she worked as a reporter and editor at the USA Today Network. Her expertise provides readers with practical guidance, helping them make informed choices about their financial and insurance needs.
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