Does auto insurance cover borrowing a car?

Whether your car is in the mechanic shop, your regular ride falls through, or you’re visiting from out of town, someone offering you their vehicle is a sign of trust.

As much as you’d like to keep their car safe, accidents happen. If you cause an accident while borrowing a car, does your insurance cover the damage or the owner’s? The answer depends on the insurance.

For example, the owner’s liability insurance will usually cover damage to property and people, but you’d have to use your own personal injury protection (PIP) car insurance if you get hurt. For more details, see what is personal injury protection (PIP) car insurance?

Usually, insurance follows the car, but there are situations where you might be financially responsible for damage you cause in someone else’s vehicle. Read on to learn more about insurance on a borrowed car, then compare quotes to find the best coverage for your needs.

Can you drive someone else’s car without insurance?

When you need to borrow someone else’s car, their insurance will cover you if the owner permits you to take it. Car insurance follows the car rather than the driver, so if you borrow a vehicle, you also borrow the coverage.

Car insurance policies include “permissive use,” allowing people to drive cars they don’t own and still have coverage from the vehicle’s policy. However, as the name suggests, permissive use is only active when the car owner consents.

Permissive use means whatever coverage the car’s owner has extends to you. For example, if you get into an accident, their liability auto insurance will cover any damage you cause to other drivers or property. Likewise, if the owner has collision insurance, their car is covered in an accident, even if you caused it.

For more details on liability auto insurance, see understanding liability auto insurance.

What happens if you get into an accident in someone else’s car?

Insurance claims work the same when borrowing a car as if the owner was driving it. If you cause damage to another vehicle or injure a driver, the injured party can file a claim against the owner’s liability insurance.

The owner can file a collision claim if their car needs repairs if they willingly lent their vehicle to you. However, if you took their car without permission, the owner must file a comprehensive auto insurance claim and a police report.

While liability coverage can pay for lots of damage, insurance policies aren’t unlimited. So if the car owner’s coverage limits run out, their insurance company may contact yours to pay the remainder. 

If you don’t have car insurance, you or the owner will be responsible for the rest. Whether it falls to you or the owner depends on your state’s laws.

Are there times when insurance won’t cover you in someone else’s car?

While a friend or family member’s insurance will likely cover you when borrowing their car, there are a few occasions when you aren’t covered, including:

• You didn’t get permission. If you take a car without permission and the owner can prove it, you’ll be on the hook for any damage you cause.
• You don’t have a license. Insurance companies won’t cover unlicensed drivers. If you borrow a car without a license, you and the owner will be liable for damages. For information, see what happens if I get caught driving without a license?
• You’re excluded from their policy. If the owner’s policy lists you as an excluded driver for whatever reason, the owner’s car insurance won’t cover you.
• You drive under the influence. Insurance companies will deny your claim if you cause an accident while intoxicated by drugs or alcohol. For more information, see does auto insurance cover DUI accidents?
• You borrow a car often. Your friend or family member’s insurance will cover you occasionally, but not if you drive the vehicle frequently. If you use someone’s car regularly, they should add you to their insurance.

Insurance companies are hesitant to extend coverage to people who live in the same household but aren’t eligible drivers on a policy. So drivers should list all eligible drivers with regular access to a vehicle on their insurance to avoid a potential claim denial.

Read more: Can I buy auto insurance without having a license?

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Does your insurance cover you when borrowing a car?

Typically, your insurance won’t cover you when driving someone else’s car because coverage sticks with the vehicle, not the driver.

However, the owner’s insurance will probably call on your insurer if the damage you do exceeds the policy’s limits. Depending on the car owner’s insurance company, it might try to get your insurance to chip in on a claim even if it didn’t meet the limits.

While the car owner’s insurance covers damage you cause in an accident, any injuries you sustain are a different story. Your personal injury protection or medical payments insurance covers injuries for you and your passengers, regardless of the car you were driving.

If you don’t have personal injury protection or medical payments insurance, your health insurance will help pay for your injuries. For more information, see what is personal injury protection (PIP) car insurance?

Can you get insurance that covers you on other people’s cars?

If you regularly need to drive but don’t have a car of your own, you can buy a non-owner insurance policy. For more information on this type of policy, see buy non-owner auto insurance coverage.

Non-owners — or non-drivers — insurance gives you liability coverage when driving a vehicle you don’t own. Non-owner insurance covers you no matter whose car you’re in, whether you drive it frequently or only once.

While a basic non-owners policy only offers liability, you can usually add the following options:

• Uninsured/underinsured motorist
• Personal injury protection or medical payments
• Rental car liability

Unfortunately, non-owners insurance doesn’t include comprehensive or collision insurance. It also only applies to you — non-owners insurance is driver specific and won’t cover anyone else in your household.

If someone gets into an accident in your car, will it affect your rates?

Unfortunately, you’ll pay higher rates after an at-fault accident, no matter who was driving. If you need to file a claim with your insurance, you’ll see your rates increase. So in the case of a friend crashing your car, your monthly insurance bill will increase as though you were in an at-fault accident. 

Find out more: Cheap auto insurance companies that accept drivers with multiple accidents.

Take a look below to get an idea of how much an accident will cost you.

As you can see, the difference in your insurance rates before and after an accident is significant. Your insurance company won’t care that you lent your car to your friend — it still must pay your claim, meaning rates will increase.

Although it might seem simple to lend your car to a friend or relative, you should carefully consider it before handing over your keys, (read our “Does auto insurance cover key replacement?” for more information). Ask yourself the following questions about the person asking to borrow your car before you lend it:

• Have they caused car accidents before?
• Are they safe drivers?
• Are they financially capable of helping repair your car if something happens?
• Do you trust them?

If you feel uneasy about another driver taking your car, you should refuse the request. It might feel awkward telling someone no, but it’s better than being financially responsible for someone else’s mistake.

You can also encourage a friend or relative to purchase a non-owner car insurance policy to make sure you are both protected.

Should you add someone who frequently borrows your car to your policy?

Most insurance companies require you to list any driver that frequently uses your car, including:

• Relatives you live with
• Roommates
• Friends or family who regularly rely on your vehicle

You don’t need to list someone on your insurance before they borrow your car for a single trip. However, anyone that uses your vehicle more than a few times should be on your policy.

If a driver causes an accident while using your car and your insurance company finds out they regularly drive it, your claim might get denied. A denied claim can leave you responsible for tens of thousands of dollars in damage, but you can avoid it by adding the driver to your policy.

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Find the Best Insurance to Cover Your Car Today

Whether you plan on borrowing a friend’s car or want to protect your vehicle when you lend it, finding the right coverage options is simple. Although the car owner’s insurance should cover you if you get into an accident in their vehicle, you can always get non-owner insurance to avoid financial hardship in case of an incident.

Whatever your insurance needs are, you should compare quotes with as many companies as possible to find the best rates.

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