CarInsurance.com Insights
- Car insurance follows the car, not the driver.
- Coverage typically extends to anyone you give permission to drive your car.
- If an excluded driver causes an accident, your insurer may deny the claim.
- Your rates will likely increase if your policy pays out for an accident caused by someone else.
- Non-owner car insurance is an option if you regularly borrow cars but don’t own one.
Car insurance generally follows the car, not the driver. If you let someone borrow your vehicle and they get in an accident, your policy is typically the first to pay for damage and injuries. The key is permissive use: you need to have given that person permission to drive. If your insurer pays out, expect your rates to rise.
Am I responsible if someone borrows my car and gets in an accident?
Yes. When you give someone permission to drive your car, and they cause an accident, your car insurance is typically the first to cover the liability costs: damage to other vehicles, property, and bodily injury to other people. If the claim exceeds your liability limits, the driver’s own insurance steps in. Either way, your rates are likely to increase after a payout.
Your bodily injury liability and property damage coverage pays for the damage or injuries others sustain, 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. Your policy typically covers other drivers, no matter who is at the wheel during an accident, as long as the driver has permissive use. Permissive use means you gave the person permission to drive your car.
Sophie’s tip
- Before you hand over the keys, check that your liability limits are high enough to cover a serious accident. If you’re not sure what you carry, it takes two minutes to look it up, or to compare options.
When doesn’t insurance cover a person driving your car?
Your insurance won’t pay if the driver didn’t have your permission, or if you’ve excluded them from your policy. A few other situations can limit or eliminate coverage:
- The driver doesn’t have permissive use.
- The person is listed on your policy as an excluded driver.
Other situations can limit your coverage or leave you paying a higher deductible:
- “Named-driver-only” policies cover only the people listed on the policy. Anyone else who drives, even with your permission, isn’t covered.
- “Step-down” policies reduce your liability coverage to the state minimum when a permissive user is driving, even if you carry higher limits. It’s worth checking with your insurer if this applies to your policy.
- Some insurers charge a double deductible on collision claims when a non-named driver was driving. Check your declarations page to see if this applies to your policy.
- Your policy coverage usually won’t extend to a rental car.
If you’re not sure which type of policy you have, check your declarations page or call your insurer before lending your car.
One more thing to remember: if a friend gets into an accident in your car and you file a claim, your rates can increase, because your policy covers the vehicle. But if someone gets a ticket while driving your car, that infraction goes to the driver, because they were operating the vehicle.
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If I loan my vehicle to someone who causes an accident, will my insurance cover their injuries?
Liability insurance covers the other driver’s damage and injuries, not your own vehicle or passengers. For injuries to the person driving your car, Medical Payments coverage (MedPay) or Personal Injury Protection (PIP), would apply if you carry those. Both pay for injuries regardless of who was at fault, up to your coverage limit.
Does my car insurance cover other drivers if my car gets stolen?
Yes. Full coverage car insurance covers you if someone steals your car and gets into an accident. Your rates won’t increase because you didn’t give the thief permission to drive and had nothing to do with the damage.
How do I file an insurance claim if a person driving my car causes a crash?
The claims process is the same whether you or a permitted driver caused the accident. Report it to your insurer using your own policy. Your collision coverage handles your car’s damage (you pay the deductible), and your liability coverage handles the other driver’s costs.
Your friend’s car insurance kicks in if the accident caused damage and injuries above your coverage limits.
If someone else crashes your car, follow the same claims steps:
- Get driver information from everyone involved in the crash.
- Take photos of the damage.
- Report the accident to your car insurance company.
Your insurer will investigate the claim and notify you of its decision.
Must I add someone to my policy if they frequently drive my car?
Usually, yes. Insurers generally require that every regular driver of your car be listed on the policy so that all potential drivers are covered. Adding a driver lets your insurer properly assess the risk of insuring your vehicle. Factors like the added driver’s age, driving history and credit score can affect your rates.
Will my insurance go up if someone else gets into an accident in your car?
Yes. When your policy pays out, even for an accident caused by someone else, your insurer ties the claim to your vehicle and your coverage history. How much your rates rise depends on your insurer, your state and your driving record. The increase stays attached to your policy, not the other driver. If it’s significant, it’s worth comparing quotes to see whether you can find better terms at renewal.
Can you get car insurance if you don’t own a car?
Yes. If you don’t own a car but often borrow one to get around, consider non-owner car insurance. It doesn’t insure a specific vehicle, so it’s cheaper than a standard policy. It’s a good fit if you regularly borrow cars, rent cars or need to keep continuous coverage.
The bottom line
Your car insurance follows your car, meaning the coverage you carry protects everyone who drives it with your permission. Before you lend your keys, it’s worth knowing your limits and making sure the person you’re lending to is comfortable driving your vehicle. If you often share your car, reviewing your liability limits is a smart step. Use the Coverage Navigator to see how your current policy stacks up.
Frequently Asked Questions: Permissive use
What is permissive use in car insurance?
Permissive use means you’ve given someone your explicit or implied permission to drive your car. When a permitted driver causes an accident, your car insurance is typically the primary coverage for damage and injuries. If you haven’t given permission, or the driver is excluded on your policy, coverage may not apply.
Will my car insurance rates go up if someone else was driving?
Yes, in most cases. If your policy pays a claim, your insurer treats it the same way as if you had caused the accident, because it’s your vehicle and your policy. Whether your rates increase, and by how much, depends on your insurer and your state. Expect at least one renewal with a higher premium.
What if someone drives my car without my permission and causes an accident?
If a driver took your car without your knowledge or permission, your insurance typically won’t cover the damage they caused to others. Your comprehensive coverage would still cover theft-related damage to your own vehicle, but liability coverage generally requires that you give permission.
Does insurance cover someone who drives your car without their own insurance?
Your car insurance can still cover the accident even if the driver doesn’t carry their own policy. But if the damage exceeds your coverage limits, there’s no second policy to draw on. That’s why it helps to confirm that regular borrowers carry at least some coverage of their own.
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