Does insurance follow the car or the driver?
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Chris Abrams
Licensed Insurance Agent
Chris is the founder of Abrams Insurance Solutions and Marcan Insurance, which provide personal financial analysis and planning services for families and small businesses across the U.S. His companies represent nearly 100 of the top-rated insurance companies. Chris has been a licensed insurance agent since 2009 and has active insurance licenses in all 50 U.S. states and D.C. Chris works tireles...
Licensed Insurance Agent
UPDATED: Oct 20, 2024
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Oct 20, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
If you’re in a situation where you’re sharing a car with someone, you may be wondering: does insurance follow the car or the driver?
In most cases, the insurance follows the car. This means if you lend your car to someone and there’s an accident, your car insurance will cover the vehicle damage. If you borrow someone else’s car and get into an accident, the same is true for you.
However, a few factors can complicate the situation. If you want to learn more about how exactly insurance coverage works in these instances, keep reading this article to find out.
- The insurance follows the car in most cases
- If you lend your car to someone and there’s an accident, your car insurance will cover the vehicle damage
- Insurance Companies may place a limit on how much they’ll cover if someone else was driving your car and they’re not listed on your insurance policy
Coverage in an Accident
In most states and in most cases, your insurance policies follow your car. So, when you lend your car to a friend or family member and they get into an accident, all the coverage policies you pay for will apply in that situation.
Unsure of how this will work? Here’s what you need to know based on what type of car insurance coverage you have:
- Liability Coverage – If the person driving your car is in an accident, this car insurance policy will cover the other person involved in the accident and will pay for their car repairs and medical expenses. However, liability coverage won’t cover your car or the person driving it.
- MedPay – If the accident injures the person driving your car, “medical payments” will cover the cost of their medical bills.
- Collision Coverage – This insurance policy covers your car in the event of an accident even if you weren’t the one driving it. Although you’re still required to pay your deductible, collision coverage does cover the cost of car repairs.
While insurance companies typically pay for the vehicle damage, they may place a limit on how much they’ll cover if someone else was driving your car and they’re not listed on your insurance policy.
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Exceptions to the Rule
The rule is that your insurance follows the car. But, depending on who you lend it to, your insurance company may decide not to cover them.
This happens in certain cases, such as:
- When the driver is unlicensed or driving with a suspended license
- When the car is being used for commercial purposes without a commercial policy
- When the driver is under the influence of drugs or alcohol
- When the driver is an “excluded driver,” or someone specifically listed as not covered
In these instances, you may have to pay for any damages and medical expenses out of pocket.
Another instance when this may occur? If the driver didn’t have permission to use your car in the first place.
Permissive Use vs Non-Permissive Use
When determining if they’ll cover the cost of an accident, insurance companies will factor in whether or not the driver had permission to operate the car.
This is often considered the difference between “permissive” and “non-permissive” use.
- Permissive Use – If you gave the driver permission to use your car, your insurance company will cover them if there’s an accident. The same is true for you if you were to borrow someone else’s car with their permission. However, your insurance may still reduce the coverage amount if the driver isn’t listed on your policy.
- Non-Permissive Use – If someone were to drive your vehicle without your permission, you wouldn’t be responsible for any damage that occurred. In this case, the driver’s insurance company would have to cover the costs.
Will Your Insurance Cover You When Driving Someone Else’s Car?
If you borrow a friend’s car with permission and get into an accident while driving it, their insurance will cover you. But, it may be reduced or limited coverage. While your friend’s insurance would be considered the primary insurance, yours would be considered secondary.
So, in certain situations, your insurance will kick in when needed. For example:
- If you caused the accident in the friend’s car and their policy has a coverage limit, your insurance coverage will have to pay for the rest.
- If your friend’s car doesn’t have certain coverage policies, then your insurance may have to pay for any damages or repairs that their insurance won’t cover.
So, if you’re planning on borrowing a car or lending your car to someone, make sure to check your insurance policies first to confirm that you’re covered.
Compare Quotes for the Best Deal
If you’re happy to lend your car to whoever needs it, then you need car insurance that protects both you and the driver. To make sure you’re getting the best deal on that insurance, it’s important to compare your rates to others for perspective.
When you use our website, you can find insurance deals quickly and easily with our three-step process. Simply input your zip code, provide your car information, and start comparing auto insurance quotes today.
Get the coverage you need at the best price possible, with AutoInsurance.org.
Sources:
Allstate. What Happens If Someone Drives Your Car And They Get In An Accident? https://www.allstate.com/resources/car-insurance/my-friend-wrecked-my-car
Nolo. ‘Permissive Use’ Car Insurance Coverage. https://www.nolo.com/legal-encyclopedia/permissive-use-car-insurance-coverage.html
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Frequently Asked Questions
Does insurance follow the car or the driver?
In most cases, insurance follows the car rather than the driver. This means that if you lend your car to someone, your insurance policy will typically cover any accidents or incidents that occur while that person is driving your car. However, there are certain exceptions and additional factors that can affect coverage, so it’s essential to review your policy and consult with your insurance provider to understand the specifics.
Are there any exceptions to insurance coverage following the car?
Yes, there can be exceptions to insurance coverage following the car. For example, if someone regularly uses your car and is not listed as a driver on your insurance policy, there may be limitations or exclusions in coverage. It’s important to check with your insurance provider to determine any specific restrictions or requirements.
Can I let someone borrow my car without worrying about insurance?
While your insurance policy may provide some coverage if you lend your car to someone, it’s crucial to keep in mind that any accidents or incidents may impact your policy. If the person borrowing your car does not have their own insurance, or if their insurance coverage is insufficient, you could potentially be held financially responsible for any damages or injuries that occur.
What if I frequently borrow or rent cars?
If you frequently borrow or rent cars, it’s advisable to consider purchasing a non-owner car insurance policy. This type of policy provides liability coverage when you drive a car that you don’t own. It’s a good option for those who don’t own a car but want protection when they occasionally drive vehicles owned by others.
Can my insurance company deny a claim if someone else was driving my car?
Generally, insurance companies should not deny a claim solely because someone else was driving your car, as long as they had your permission to use it. However, if the person driving your car does not have a valid driver’s license or is engaged in illegal activities at the time of the incident, it may impact your claim’s validity. It’s important to review your policy and contact your insurance provider to fully understand their specific guidelines.
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Chris Abrams
Licensed Insurance Agent
Chris is the founder of Abrams Insurance Solutions and Marcan Insurance, which provide personal financial analysis and planning services for families and small businesses across the U.S. His companies represent nearly 100 of the top-rated insurance companies. Chris has been a licensed insurance agent since 2009 and has active insurance licenses in all 50 U.S. states and D.C. Chris works tireles...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.