Thursday, June 16, 2022

Does Car Insurance Cover Someone Else Driving Your Car

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Can I Drive My Friends Car If I Have Insurance

Does My Auto Insurance Pay if Someone Else is Driving My Car?

Similar to the scenarios above, if you drive your friends car and get into an accident that was your fault, it most likely will be their auto insurance coverage that will be affected. Remember, even if you have better insurance than them, the insurance usually follows the car. So theyll probably file the claim, pay the deductible and face the potential higher rates. Again, make sure you both are on the same page as far as who will pay the deductible if you get into an accident while driving their vehicle.

Insurance Companies Wont Be On Your Side

In general, insurance companies will never side with car accident victims. Whether someone else caused an accident, or you were victim to one yourself, insurance companies can be extremely unforgiving and apathetic.

Their sole interest is only to protect themselves and make a profit while doing so. If that means raising your rates or denying you compensation, they wont hesitate to do so. Fighting for a fair settlement alone can be difficult. Thats why you should get in touch with a lawyer as soon as possible.

Talk To A Car Accident Lawyer In Georgia For Free

After someone gets into an accident while driving your car, its best to contact a car accident lawyer as soon as you can. An experienced lawyer can help you gather evidence and build a strong insurance claim if the other driver was at fault.

At John Foy & Associates, we believe you should not have to pay for the costs someone else caused just because you permitted someone else to drive your vehicle. Over the last 20 years, weve grown to become one of Georgias largest and most respected personal injury law firms. Our number one goal is getting you the compensation you deserve. To get started with a FREE consultation today, call us at or contact us online.

Call or text or complete a Free Case Evaluation form

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Ready To Shop Car Insurance

However, if you borrow someone elseâs car frequently, things can get a little more complicated. You might want to consider getting a non-owner policy to protect yourself, or asking to be added to someone elseâs policy.

Key Takeaways

  • If you borrow someone elseâs car with their permission, you are covered by their auto insurance policy. If you get into an accident, their liability coverage will pay for damages and injury that you cause

  • Accidents and claims typically raise car insurance rates, so if you get into an accident while driving your friendâs car, it could result in more expensive premiums for them

  • If you borrow cars often, rent cars frequently, or if youâre in between cars you should consider buying non-owner car insurance for extra liability protection

Before You Lend Your Vehicle To Someone Else

Can You Insure Yourself to Drive Someone Else

Whenever you allow someone else to drive your car there are risks, because unfortunately, even good drivers are sometimes involved in accidents . While its not uncommon to lend a friend or relative a car, youre not just lending your vehicle, youre also lending your auto insurance and personally exposing yourself to liabilities that may not be covered by your auto insurance or the limit of liability may not be sufficient to satisfy any judgment awarded e.g. your auto insurance provides liability limit of $1,000,000. Perhaps the friend driving your car gets involved in an accident and injures occupants of the other car. The court awards a settlement of $1,400,000 to the injured party. The difference of $400,000 will be your personal responsibility to pay.

If a friend borrows your vehicle and causes an accident, you could be found financially responsible putting both your insurance rates and your relationship at risk. Before lending your vehicle to someone else, ask yourself the following questions. Does the person:

  • Exhibit safe driving habits?

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Can I Drive Another Car On My Insurance

Moral of the story when it comes to loaning out your car? Think carefully about who youre handing the keys over to, double-check your policy for any stipulations, and reiterate to them the values of driving safely!

But what happens when you borrow a car? As mentioned, comprehensive and collision insurance follows the car, so if youre at fault in an accident while borrowing another persons car, it is the car owners insurance that would cover damage to his or her vehicle. However, your own insurance would be secondary coverage, meaning that it would be used for damage above the limits on the vehicle owners policy.

You would also be responsible for personal liability. So if other people are injured, or other property is damaged in an accident you caused, you would need to file a claim with your own insurance company for the liability.

Whose Liability Car Insurance Covers The Driver When You Loan Out Your Car And Its Damaged In An Accident

First, you need to determine if the cars insurance policy includes liability and collision coverage. Depending on the scale of the accident, the car’s liability coverage may not be enough to pay for the resulting damages. If this happens and the driver has their own insurance, their policy will pay for the rest assuming they have enough coverage.

If the driver of your car is uninsured and causes an accident, you could be liable for everything. For example, what if the uninsured driver causes a multiple-car pileup that exceeds the limits of your insurance policy? The injured parties could sue you for medical fees and property damages in excess of your coverage limits.

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Do You Have To Be 25 To Drive Someone Elses Car

Provided the young driver has reasonably clean driving record, no, theres no age restriction. This applies to both incidental and occasional use. The policyholder has the obligation to report regular, occasional drivers to the insurer. In the case of an inexperienced driver, additional premiums covering that drivers access to the car are likely. Since young drivers are statistically more likely to have accidents, their access to a vehicle increases its chances of incident. Unlike some provinces, Ontario permits the use of age as a risk determination factor.

There are compelling reasons, though, why a young driver should be listed on another persons policy. There is no age 25 magic number effect. Lower car insurance rates have more to do with a drivers experience and driving history. These factors commonly come together for many drivers around the age of 25. Rates decrease with every year of trouble-free driving. Adding a child to a parents policy begins the insurance history of the young driver. This provides a record of insurance coverage. If this record remains claims-free, then the driver has a better chance of achieving the lowest premiums at the youngest age.

Is It Legal To Drive A Borrowed Car Without Your Own Auto Insurance

Does my insurance cover me if I’m driving a friend’s car?

Yes, its legal to drive a borrowed vehicle if you dont have your own car insurance. Remember, car insurance follows the car, not the driver. So, theres no question of legality as long as the car youre driving is insured.

If youre going to drive someone elses vehicle, make sure you know where its registration and car insurance card are before you get behind the wheel. If youre pulled over for a ticket or get into an accident, you’ll need both.

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When Is Someone Not Covered By My Car Insurance

Most states will allow you to exclude specific named drivers from your policy. This could be someone in your family whose driving record isnt great or has a few accidents to their name. By excluding them, you protect your own insurance premium from going up.

But what happens if they ignore this exclusion and use your car? And, worse still, what if they damage it? Your states laws could come into play at this point. But, as a general rule, your insurance provider wont pay out if the excluded driver uses the car without your permission and causes damage.

Common Insurance Questions About Borrowed Cars

  • What happens if I dont name a licensed driver in my home on my policy?

    If the unlisted driver gets in an accident, there could be serious consequences. It will depend entirely on your insurance company, but one of three things will likely happen:

  • The company will pay the claim and then require you to add that person as a driver.
  • The company will pay the claim but will not renew your policy at the end of your term.
  • The company will deny the claim because the driver wasnt listed.
  • Can an insurance company really deny a claim if a driver isnt listed?

    They can initially deny the claim, but it gets complicated after that. Theres a chance you could fight the denial by taking the company to court, since a car insurance policy allows for anyone to drive your car with your permission.

    But court means paying for attorney fees out of pocket, and theres no guarantee on the outcome.

  • Why should I buy extra coverage from a rental car company if my own policy will cover the rental?

    Buying insurance from a rental car company can be expensive, which is why many people opt not to get it. But there are benefits to doing so.

  • A claim wont impact your insurance rates.
  • You wont have a deductible under the rental cars policy.
  • You can simply return the car and leave, without following up on the claim.

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What Exclusions Might I Face

Exclusions come into play when insured vehicles don’t meet the requirements for coverage under a policy. Insured vehicles, for example, may include vehicles owned by friends or neighbors, but if the car is there for you to use regularly whenever you like, an exclusion might kick in, as you’re supposed to carry your own insurance if you’re a primary driver of a vehicle.

Vehicles designated as replacements are usually covered if your own vehicle can’t be used, like if it’s in the shop, but the coverage might not follow you. Finally, if the vehicle you’re driving is anything other than a specifically designated private passenger vehicle that you don’t own and isn’t listed on your policy, it might be excluded.

Other exceptions exist, as every auto policy is different these days, and what is covered under one policy may not be under others. Specifically, if a friend driving your car doesn’t have insurance, you might be responsible to use yours to cover damages, according to Allstate.

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Does my insurance cover someone else driving my car?

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Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD& D insurance as well. She has worked for small health insuran…

Written byRachael Brennan Licensed Agent for 15 Years

Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

Former Auto Insurance Claims Manager

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Am I Insured When I Drive Other Cars

Whether or not auto insurance follows the car or the driver is a common question and also a commonly misunderstood scenario.

Let’s say you’ve done your homework and found a good insurance rate for a good policy from a good insurance carrier. You’re a safe driver with a clean record, so your friend lends you their car for the weekend. Or vice versayou lend your safe-driving, clean-record friend your car for the weekend. In the event of a collision: Whose insurance is responsible for covering it? The one who owns the car, or the one who was driving the car?

Generally speaking, auto insurance follows the car instead of the driver. Follows the car, meaning: if you lend your friend your car and your friend gets into a collision, your insurance would cover it, and if your friend lends you their car and you get into a collision, your friend’s insurance would cover it.

However…there can be exceptions to this rule depending on the situation and the type of insurance coverage.

Since it’s easiest, in this case, to spell out the exceptions to the rule, let’s look at the scenarios where the insurance would follow the driver instead of the car.

Get To The Bottom Of All Things Car Insurance

If youre looking for a car insurance policy or simply need help figuring out the coverage youre getting from the one you do have, an independent insurance agent can help.

Use our Endorsed Local Provider program to track down an expert in your area!

Its free to get connected, and they can help you find a policy that gives you the coverage you neednot just for you, but for all the members of your family and any Aunt Carols in your world!

About the author

Ramsey Solutions

Ramsey Solutions has been committed to helping people regain control of their money, build wealth, grow their leadership skills, and enhance their lives through personal development since 1992. Millions of people have used our financial advice through 22 books published by Ramsey Press, as well as two syndicated radio shows and 10 podcasts, which have over 17 million weekly listeners.

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Borrowing A Car Is Covered By The Car Owners Insurance Except In A Few Cases

Letting a friend or family member borrow your car for a quick run to the store seems innocent enough, but whose insurance pays out in an accident? Most of the time, borrowing is covered by the car owners insurance, but its important to know who is borrowing your car and how often damage happens.

Does Insurance Follow The Car Or The Driver

How to insure yourself to drive someone else’s car

For the most part, car insurance follows the car listed on the policy. If someone else borrows your car, in a way, theyâre borrowing your car insurance too. At least, that is, if theyâre driving your car with your permission. When someone drives your car with your approval, they are covered under what is called permissive use.

Whenever someone else is driving your car with your permission, yours is the primary car insurance. That means that if your friend, cousin, neighbor, co-worker or other type of pal is driving your car and gets in an accident, your car insurance will cover the damage in much the same way as if you were driving, although coverage for other drivers may be more limited than the coverage when youâre at the wheel.

If the driver who borrowed your car causes an accident, yourliability coverage will pay for damage or injury they caused to someone else. And yourcollision coverage would pay for damage to your own vehicle from the accident. The other driver is only responsible for whatever your auto policy doesnât cover.

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Will Someone Else Crashing My Car Raise My Insurance Rates

Having an accident on your record, regardless of who was driving, can definitely raise your insurance rates. They are more likely to go up if your cars driver was at fault for the accident.

The penalties for not-at-fault accident varies depending on your insurance provider, so you will have to view your specific policy to know for sure. However, if you are able to file a claim with the at-fault drivers insurance, your rates are less likely to go up.

In addition, you might be able to avoid higher rates if you added accident forgiveness to your policy, which some providers offer.

For a free legal consultation, call

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc…

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Can I Lend My Car To My Friend Or Relative

As leaders in providing insurance coverage for nearly 35 years, clients often ask us if other drivers are covered under their auto insurance article from insurance broker Bow Valley Insurance policy. This explains your coverage when you lend your vehicle to a friend or a relative.

Perhaps a friend needs to borrow your pickup to move into their new home, or pick up a new TV from the electronic shop or before leaving on a vacation, made arrangements with a friend to pick you & your family up from the airport in your SUV as it can accommodate all of you and your luggage. As vehicle owners, its not uncommon to have people ask to borrow our car, and we would like to help. But we also need to be sure the vehicle and the person driving is covered by your auto insurance policy.

Related Questions And Answers

Does my insurance cover someone else driving my car?

Does my Auto Insurance Cover any Driver?

Most auto insurance polices will cover any legal driver that gets behind the wheel of your car. However it is best not to assume this is the case. Individual policies vary from company to company and person to person. Typically the crux of the issue is if the owner gives another person permission to drive their vehicle. In these instances, nearly every policy will cover another driver. Drivers without permission are almost never covered by insurance policies. Prior to making an important assumption, it is recommended you check with your insurance agent before allowing other drivers behind the wheel of your car.

Does Comprehensive Insurance Cover Other Drivers?

Most of the time, your comprehensive insurance will cover drivers that you allow to operate your vehicle. Your policy may vary, so you should check with your insurance provider prior to allowing anyone else to operate your vehicle. Family members are generally already included in your policy. No insurance will cover a driver that operates your car without the owner’s permission. Your terms and conditions may vary depending on your provider.

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