Can I Get Insurance for Someone Who Borrows My Car?

If you’re wondering whether you can get insurance for someone who borrows your car, the answer is a little more complicated than a simple yes or no. However, in most cases, your car insurance policy will extend to anyone who has your permission to drive your vehicle. This means they would be covered under your liability insurance if there’s an accident. But this coverage might not apply to every type of car insurance policy or situation. 

For instance, if a friend or family member causes an accident while driving your car, your insurance company would typically pay for the property damage or personal injury protection. However, keep in mind that if the damages exceed your coverage limits, you might be on the hook for extra costs. To stay out of any unnecessary trouble, some drivers also consider adding extra liability coverage to protect themselves. In this article, we’ll discuss extensively “Can I get insurance for someone who borrows my car.” 

Can I Get Insurance for Someone Who Borrows My Car?

Let’s give you a very simple answer first. It’s affirmative. You can generally get insurance coverage for someone who borrows your car. However, there are a few exceptions to consider. Firstly, most car insurance policies will cover anyone you allow to drive your car, as long as you’ve given permission to them. According to the Insurance Information Institute (III), your insurance company will provide coverage if someone is driving your car with your consent. This means that if you have liability insurance, it would most likely cover damages. 

However, there few exceptions here as well!  

For instance, some policies may not cover relatives living in your home unless they are specifically named on your policy. Also, if the person borrowing your car is regularly using it, you might need to add them as an additional driver. And if the damages exceed your coverage limits, either you or your borrower’s insurance will pay the extra costs. 

So, to better understand this situation, let’s talk about the factors that decide if your car insurance will cover situations where someone other than the car owner drives the vehicle. 

Factors That Decide If Your Car Insurance Will Cover Other Drivers 

In most cases, auto insurance follows the car, not the driver. So, it doesn’t matter who is driving your vehicle. But there are a few important factors that may influence this decision. These factors include the type of coverage you have, the driver’s relationship to you, the terms and conditions of your policy, and so on. Let’s analyze the important points to consider when figuring out if your insurance will cover another driver. 

Permissive Vs. Non Permissive Use 

A lot of policyholders ask when someone else can drive my car. Well, car insurance depends on whether the person borrowing your car has your permission. This is known as permissive use. So, if you have given your permission to someone to drive your car, they are typically covered under your policy. 

On the other hand, if someone takes your car without your permission which is known as non-permissive use, they may not be covered. However, in cases of theft, or any accident caused by a thief, you’ll not be considered liable for damage like bodily injury or property damage. However, you still have to file a claim to recover the vehicle repair costs. 

Named Vs. Unnamed Drivers

Another important factor is whether the driver is specifically named on your policy. In some cases, your liability insurance won’t extend to people who live with you, such as relatives, unless they are explicitly listed as named drivers. So, if someone regularly uses your car (e.g., your roommate) but isn’t on your policy, you will probably face denied claims if an accident occurs. For instance, if your friend drives your car without your permission and crashes it,  

Type of Insurance Coverage

The type of car insurance coverage you have is also a key factor here. For instance, while liability insurance may cover another driver in case of an accident, coverage for damages to your car (like collision or comprehensive) might not extend to the person you lend your car to unless they are added to your policy. So, you should review your policy to understand the extent of your coverage.  

Regular Use of the Car

If the person borrowing your car uses it more frequently, insurance companies might want them to be added as a listed driver. In case you fail to add them, it may result in limited coverage, and rejected claims. However, there wouldn’t be any complications and the permissive use rule would likely apply if the person is borrowing the car once in a while. 

Insurance Limits and Exclusions 

Even if your policy does cover the person borrowing your car, you need to be aware of any coverage limits. If the damages from an accident cost a very large amount that exceeds those limits, you may have to pay the extra money out of your pocket. Also, your policy may have exclusions, such as not covering certain high-risk drivers. 

State Laws and Insurance Company 

Both the specific state laws and insurers decide when is and isn’t your auto insurance will cover other drivers. Different state have their own rules about car insurance and what’s required. In some states, the car owner's insurance kicks in and acts as primary coverage, while in others, the driver’s own insurance could take priority. 

Besides, the specific company your car is insured with ultimately decides how they are going to cover you in this particular situation. Since it varies from insurer to insurer, you should discuss it with them and see how your auto insurance policy will work when someone else drives your car. 

Read More: Can You Get Auto Insurance with a Suspended License?

How Does Insurance Work When Someone Borrows Your Car? 

As we stated earlier when someone borrows your car, your car insurance policy commonly follows the vehicle, not the driver. However, how different types of auto insurance such as liability, collision, comprehensive, or medical payment coverage work can vary depending on your circumstances and who is at fault. Let’s give you an explanation regarding how each type of insurance works when someone else is behind the wheel. 

Auto Liability Coverage

Liability auto insurance is mandatory in almost every state in America and undoubtedly this is the most vital coverage. If the person driving your car causes an accident, your liability coverage will pay for any property damage or injuries they cause to others. 

In states with an at-fault insurance system, your policy will cover the cost of damages up to your policy limits. For example, If your friend accidentally hits another car, your liability insurance will handle the costs for the other driver’s vehicle repairs and medical bills. 

However, if the damages exceed your policy limits, you could be held personally responsible for the additional costs. In some cases, the borrower’s car insurance policy may also get activated to cover the extra amount for reimbursement. In no-fault states, like Michigan, your insurance will still cover the cost, but the other driver’s own Personal Injury Protection (PIP) will cover their medical bills regardless of who is responsible for the accident. 

Auto Collision Coverage 

Auto collision insurance covers the costs of repairing or replacing your car if it’s damaged in an accident, regardless of who was at fault. If someone else is driving your car with your permission and they get into an accident, your collision coverage can help pay for the repairs to your vehicle. 

For instance, if your siblings borrow your car and hit a pole, your collision insurance will step in to cover the repair costs for your car, up to your policy’s limit, after you pay the deductible. 

Comprehensive Insurance Coverage 

As you might already know, comprehensive insurance covers non-collision related damage, like theft, vandalism, natural disasters, or hitting an animal. If someone else borrows your car and it gets damaged by one of these events, your comprehensive insurance may still apply since it protects the car itself, not the driver. 

Suppose you allow your neighbor to drive your car, and while it’s parked, a tree branch falls on it during a storm. In this case, your comprehensive insurance will help pay for the damages, as long as you have this coverage in your policy. 

Medical Payment Coverage 

If someone drives your car and crashes it, causing injury, your medical payment coverage (AKA Med Pay) can help pay for medical expenses regardless of who is at fault. This coverage protects both drivers and passengers if they get hurt in the accident. 

If a friend borrows your car, has an accident, and gets hurt, MedPay could cover their hospital expenses up to your policy's limit. However, keep in mind that this coverage varies by state and may not always apply when someone else drives your car. 

What Happens If a Driver Is Not Listed on an Insurance Policy? 

If a driver isn’t listed on your automobile insurance policy, coverage depends on whether they have your permission to use the vehicle and how often they drive it. If the driver is a friend or relative who occasionally borrows your car with your permission, your insurance may still cover them. However, in this case, it would be your responsibility to pay the deductible, and your auto insurance rates could increase. Find out how much auto insurance rates could go up after an accident. 

However, if the driver lives with you or uses your car frequently (e.g., roommate, legal ward, spouse, or child), they need to be specifically listed on the policy. Regular drivers or household members who aren’t listed might not be covered, and if an accident occurs, the insurance company may deny the claim. This will leave you personally responsible for damages and legal costs. 

What If the Other Drivers Get Traffic Violations? 

You might also be wondering what happens if you let someone drive your car and he/she receives a traffic violation. Well, the violation generally affects the driver, not the vehicle owner. However, as we have stated, if they cause an accident, your car insurance may be the primary coverage since insurance usually follows the car, not the driver. 

Even if the driver drives your car without your consent and gets a traffic violation, the responsibility still falls on the driver. However, when it comes to insurance, in some cases, if they cause an accident, your insurance may not cover damages because they didn’t have authorized use. So, if you file a claim, you might need to prove the car was taken without your consent, possibly involving police reports. 

Situations When Your Car Insurance May Not Cover Other Drivers 

If someone else driving your car, then there are situations where your insurance may not provide coverage. These scenarios can leave you personally liable for damages.

• Excluded Driver: If an excluded driver (a person specifically named in your policy as not covered) drives your vehicle, the insurer will not pay for any damage or injuries they cause. This exclusion commonly applies to high-risk drivers within the household.
• Driver Without Permission: If someone uses your car without your explicit permission and gets into an accident, coverage might be denied. This may happen if the insurance company can prove that the driver did not have your consent.
• Rideshare or Commercial Use: Your personal auto insurance doesn’t cover business use. This means personal auto insurance generally excludes coverage for accidents occurring while using your vehicle for rideshare services (like Uber) or other commercial purposes unless you have specific coverage for such use.
• Non-compliant with Policy Terms: If the person who is driving your car doesn’t meet certain requirements outlined in your policy, such as having a valid driver’s license, the insurer might not cover an accident.

What Happens If an Uninsured Driver Borrows Your Car and Gets into an Accident? 

Well, the rule of thumb is that “insurance typically follows the vehicle, not the driver.” So even in this case, if an uninsured driver borrows your car and gets into an accident, your insurance policy will generally be the primary coverage used. This means your liability, collision, or comprehensive coverage may handle damages and injuries. However, if your coverage limits are exceeded, you could be personally responsible for any remaining costs, which can be financially devastating. In case the driver is particularly excluded from your policy or took the car without your consent, your insurance might not cover the accident. So, you need to understand these details before letting someone borrow your vehicle. 

Is Other Driver Auto Insurance Involved? 

When you allow someone else to drive your car and they get into an accident, several factors determine who pays for the damages. Generally, your car insurance kicks in as long as you give the driver permission to use your vehicle. This includes liability coverage for damages they cost to others and collision coverage for your vehicle’s damages. 

If the person driving your car doesn't have their own insurance or their coverage isn't enough, they may need to involve their own auto insurance provider to pay for costs that exceed your policy limits. Also, if the driver was using the vehicle without your permission (a situation known as non-permissive use), they would usually be held responsible for the damage, and your insurance wouldn't cover the incident. 

It's also important to understand certain situations that could void your coverage. For instance, if you negligently entrusted your vehicle to someone who is unfit to drive – like an intoxicated person (e.g., drunk) – your insurance might not cover the accident. In this case, the other driver’s auto insurance might come into effect and pay for the damages. 

What If My Family Member or a Friend Borrow My Car and Crashes It? 

If a family member or friend borrows your car and crashes it, your insurance usually covers the damages. Your policy’s liability coverage pays for any damage you cause to others. If your car is damaged, collision coverage will help with repairs, minus your deductibles. If the driver has their own insurance, it may also cover additional costs. However, if the driver is excluded from your policy, your insurance won’t cover the accident.  

Here are some factors that may come into play in this scenario:

• Your insurance policy
• Other driver insurance policy
• Type of Coverage
• Excluded drivers
• Consequence (Having a crash can lead to higher insurance premiums)
• You should review your policy or talk to your insurance provider to fully understand your coverage.

Should You Add All Household Members to Your Auto Insurance Policy? 

It’s always a good idea to add all household members to your auto insurance policy. This makes sure everyone who might drive their car is covered in case of an accident. If an unlisted driver has an accident while driving your car without permission, your insurance won’t cover the damages. 

Including all household members can also help avoid potential issues with claims. Besides, many insurance companies require you to disclose all licensed drivers in your household to accurately assess risk and provide appropriate coverage. If you’re a policyholder of L.A. Insurance and want to add your household members to your full coverage auto insurance plan, you can contact us and let us know the members you want to include in your policy. However, if you’re looking for the most affordable insurance agency that protects you and your car from every type of damage, reach out to one of our friendly agents to discuss! You can find an agent here. 

Can I Get Insurance for Someone Who Borrows My Car: Final Takeaways 

• Your auto insurance typically covers others driving your car with your permission as long as they are not excluded drivers.
• If someone borrows your car and causes an accident, coverage depends on the type of insurance you have (e.g., Liability, collision, comprehensive)
• Your insurance won’t cover you if a borrower is an excluded driver on your policy  
• Your insurance covers you even if the borrower is an uninsured driver
• If your policy limit exceeds, the other driver’s insurance may come into effect
• If you rent your car to someone else, they may need their own insurance, or you may need a specific policy that allows rentals
• Consider adding all household members to your automobile insurance policy to make sure you’re protected after a crash
• Always inform your insurance company about anyone regularly driving your vehicle to avoid coverage gaps

Read Also : Can I Get Car Insurance with a Foreign Driver's License?

Frequently Asked Questions (FAQs)

Can My Financed Car Be Insured by Someone Else? 

Yes, a financed car can be insured by someone else, but it depends on the circumstances. Typically, the insurance company requires an “insurable interest,” meaning the person insuring the car must have a financial stake in it. If the car is financed by someone else’s name, they may need to insure it themselves. Alternatively, they can add you to their policy as a named driver. Also, the finance company usually requires that they be listed on the insurance policy to protect their financial interest.

Whose Insurance Pays When You Borrow a Car? 

When you borrow a car and get into an accident, the car owner’s insurance typically pays for the damages, not the driver’s insurance. This means that if you have permission to drive the car, the owner’s policy covers you through something called “permissive use.” However, if the damage exceeds the owner’s coverage limits, the driver’s insurance might cover the excess. 

Can Someone Drive My Car If They Are Not on My Insurance in Michigan? 

If you let someone drive your car in Michigan and they're not on your insurance, they might still be covered under "permissive use." This means your insurance could cover them if there's an accident. But this coverage might not apply in all situations, especially if the driver isn't listed on your policy. In those cases, it's best to add regular drivers to your policy for full coverage. Also, in Michigan, your insurance would usually cover damages caused by the drivers to others. But if the damages exceed your coverage limits, you might be personally responsible for the excess due to Michigan's owner's liability law. 

Will My Insurance Cover Me If I Drive Someone Else's Car in Texas? 

If you drive someone else’s car in Texas, your insurance may cover you, depending on your policy and state regulations. Texas generally allows coverage for permissive drivers, meaning if the vehicle owner’s policy covers other drivers with permission, it should extend to you. 

Can I Insure My Son's Car If He Doesn't Live with Me? 

Generally, most insurance companies don’t allow you to insure your son’s car if he doesn't live with you. Auto insurance policies usually cover people in the same household. Still, if your son is temporarily living elsewhere, such as attending college, he might still qualify under your policy. 

Am I covered if I’m Using a Borrowed Car for Business? 

If you use a borrowed car for business, the owner's personal auto insurance might not cover you. In fact, personal policies usually don't cover business use. To make sure you're covered, get commercial auto insurance or check if the business providing the car has coverage.