Do you need auto insurance to drive someone else’s car?

There are plenty of times when you may need to borrow a person’s car. For example, you may need a car to get to work when yours is in the shop or a way to get around if you’re visiting from out of town. But how do you get car insurance if you borrow a friend or family member’s car?

In most cases, an insurance policy follows the vehicle rather than the owner, so you should be protected if you drive someone else’s car. Still, there are some scenarios where you may need an insurance policy. 

Can I drive someone else’s car without insurance?

The only thing you’re legally required to have to drive someone else’s car is a valid driver’s license. So as long as you borrow someone’s car with their permission, you should be covered under the permissive use clause in their auto insurance policy.

Permissive use protects you when you’re driving someone else’s car to the same coverage level. So if the car owner has a full coverage policy on the vehicle, you are protected with the same coverage as the driver.

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

If you’re in a car accident in someone else’s car, that person’s insurance should cover the accident. 

Coverage will only extend to other people and vehicles if that person has a liability-only policy. But you and the car owner must determine how to cover any damage to the vehicle you were driving. 

In some cases, your car insurance can help cover incidents, but this depends on the nature of your coverage if you have any.

When will someone else’s car insurance not cover me?

Unfortunately, there are a few scenarios in which another person’s insurance may not cover your use of their vehicle. These instances include:

• If you did not get permission. You can only drive under permissive use if you are permitted to drive someone’s car. Otherwise, you took the vehicle without permission and will be financially responsible for the damages. 
• If you’re an excluded driver. If you’re specifically excluded from driving the person’s car, their policy will not cover you.
• If you don’t have a license. You have to have a license to drive someone’s car legally. If caught driving without a license, you could get into significant trouble.
• If you’re driving under the influence. If you are caught driving under the influence of drugs or alcohol, car insurance will not cover you as you broke the contract. You can expect to pay a significant amount if you get a DUI or DWI. 

Anytime you are not covered under an insurance policy, the fees associated with an accident will have to come out of your pocket. Keep this in mind before borrowing a car, and make sure you know the intricacies of the car’s coverage.

Is it okay to lend my car to other people?

In most cases, it’s fine to let someone borrow your car. However, you should look at your insurance policy before doing so to ensure there aren’t any exclusions that would impact the coverage on your vehicle. 

There are a few times you may want to think carefully before lending your car to a friend or family member, as financial responsibility could ultimately become your problem.

The Driver Who Borrowed Your Car Causes an Accident

If you lend your car to a friend or family member and that person is in a car accident, you can expect to pay for it. 

Even if your insurance covers all the bills and fees associated with the accident, you can expect to pay higher rates for coverage because you filed a claim with your insurance company.

Adding Frequent Borrowers to Your Policy

If someone regularly borrows your vehicle, that person must be listed on your car insurance policy. Otherwise, insurance may not cover any claims. 

Many insurance companies require you to add roommates or family members to your policy if they do not have their own car or are likely to drive yours frequently. 

But adding someone to your car insurance policy will make your rates increase. This is especially true if the person has a bad driving history or is under 25. Unless the person plans to pay you for the insurance coverage, you will have to pay more.

Someone Driving the Car without Explicit Permission

If you don’t give someone permission to drive your car, that person will have to pay for any damages out of pocket. But if you’ve granted permission before, it may be challenging to prove that you didn’t give permission later. 

Before lending your car out, ensure you’re comfortable with the person driving it. If you don’t trust their decisions behind the wheel, don’t let them drive off in your car. 

Business Use of the Vehicle

If someone borrows your car for business, that person may not be covered if they’re in an accident. Check with your provider to see if the individual would need to purchase additional coverage in the event of an accident. 

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Do I need insurance if I borrow someone’s vehicle?

If you’re borrowing a person’s car with permission, the car’s insurance should also cover you. However, car insurance follows the car rather than the driver, so you should not need car insurance coverage to borrow someone’s vehicle once.

If you’re considering borrowing a car frequently, you will need to purchase non-owner car insurance or be added to the existing car insurance policy. Both options will cost money, but they can help ensure you are protected if you’re ever in an accident. 

How do I insure a borrowed car?

If you want to purchase insurance for a borrowed car, your best bet is to buy non-owner car insurance.

Non-owner coverage, or borrowed car insurance, often covers liability requirements. Some non-owner policies carry additional coverages that help if you’re ever in an accident while driving someone’s car.

Rates for non-owner car insurance vary from one company to the next. You should compare quotes online to discover which company in your area offers the best deal on non-owner car insurance coverage. 

Can I get in trouble for lending someone my car?

It’s okay to let someone borrow your car. However, as mentioned previously, there are a few times in which you may not want to allow a friend or family member to borrow your car because the coverage will not extend to them or because they’re not trustworthy.

But you won’t get in legal trouble for letting a licensed, sober driver take your vehicle to run errands or make it to an important meeting. Use your discretion when deciding whether to allow someone to drive your car, as you could end up paying the bill for damages that exceed your policy.

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How do different car insurance coverages work if someone borrows my vehicle?

The coverage you purchase on your car will carry over to the person who borrows it. So you can expect the coverage you have on your vehicle to function the same as if you were behind the wheel. 

Liability Insurance

Liability insurance covers bodily injuries and property damage caused in an accident. For example, if the person who borrowed your car is responsible for an accident, this coverage will help to pay for injuries and damage to other people and their vehicles.

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For more protection, you may consider full auto insurance coverage, including collision and comprehensive coverage.

Collision and Comprehensive Coverage

Collision coverage takes care of damage to your vehicle if you’re in an accident, and comprehensive insurance covers damage to your car if it’s damaged by vandalism, inclement weather, and other non-accident-related incidents. 

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If you carry collision and comprehensive coverages on your vehicle, these same coverages will apply to the person borrowing your car. 

PIP, MedPay, and Uninsured/Underinsured Motorist Coverage

In some states, personal injury protection (PIP), medical payments (MedPay), and uninsured/underinsured motorist coverage are required coverages. Policies for each of these coverages vary from one state to another. 

If you have these coverages on your vehicle, they should extend to anyone else driving your car.

The Driver’s Insurance Coverage

If the person driving your car has insurance, it may help cover costs extending past your policy’s limits. This depends on the state you live in and the insurance policy you carry.

Exclusions

Some insurance companies have exclusions in policies that impact how coverage applies to the permissive use of your vehicle. Before allowing anyone to borrow your car, familiarize yourself with your car insurance policy to ensure your coverage will extend to the driver. 

When will a car accident affect my insurance rates?

If you file a claim with your insurance company, you can expect your rates to increase. So unless you’re in an accident and another driver is considered at fault, you will likely see a minimal increase in your car insurance premiums. 

Car insurance companies charge different rates based on your driving record, so your insurance provider depends on how much your rates will increase after one accident.

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You may not see a rate increase if you have accident forgiveness with your insurance company. But this will depend on the circumstances surrounding the accident. 

Driving Someone Else’s Car: The Bottom Line

When you drive someone else’s car, you should be covered by their insurance policy. But there are times when their policy may not extend to you.

You can consider purchasing a non-owner car insurance policy if you regularly drive other people’s vehicles during the week. You may also be able to add yourself to an already existing policy on the car.

Before allowing anyone to drive your car, be sure your policy does not exclude them. Otherwise, you or the other driver will have to pay for any accident-related damages out of pocket.

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