Most people don’t think twice about letting a friend or family member borrow their car. Maybe they need to run a quick errand or help with a ride. It seems like no big deal until something goes wrong.
Now imagine this: you let someone else drive your car, and they get into a crash. What happens next? Who pays for the damage? Does your insurance cover it?
Let us see this in a simple way, so it is easy to understand.
Car Insurance Follows the Car
One of the most important things to know is this: car insurance usually follows the car, not the driver.
That means if someone else is driving your car and they crash it, your insurance will likely be the one used to pay for the damage. Even if the person driving has their own insurance, your car’s insurance is used first.
So if your friend causes a crash in your car, your insurance company will likely have to pay for the damage to your car and to the other car, too.
Did You Give Permission?
Another big question is whether or not you gave the person permission to drive your car.
- If you did give permission (this is called “permissive use”), most insurance companies will still cover the crash under your policy.
- If the person did not have permission to drive your car, the insurance company might not pay for anything. In that case, the driver’s own insurance, or even the driver, might be held responsible for the costs.
So it’s very important to only let people you trust drive your car and to make sure they are allowed to drive.
Will Your Insurance Rates Go Up?
Yes, it’s very possible.
Even if you weren’t driving, a crash in your car can still make your insurance rates go up. That is because your insurance company sees it as a risk. They had to pay for the crash, so they may charge you more in the future.
This can happen even if the crash wasn’t your fault. That’s why it’s smart to be careful about who you let borrow your car.
What If the Driver Has Their Own Insurance?
If the person driving your car also has their own insurance, it might help, but only after your insurance is used up.
For example, if your insurance doesn’t fully cover the damage, the driver’s insurance might step in to help. But yours comes first.
Some insurance policies may also have rules about who is covered. For example, some may not cover a driver who is underage, doesn’t live in your household, or has a bad driving record.
What If the Car Was Stolen?
If someone steals your car and crashes it, you usually won’t be held responsible.
Most insurance companies treat stolen car crashes differently. If you can show that the car was taken without your permission, the damage might be covered under your comprehensive insurance (if you have it).
But make sure to report the car as stolen right away.
Think Before You Lend Your Car.
It’s always nice to help someone out, but when it comes to cars, you need to be extra careful. Before you let someone drive your car, ask yourself:
- Do they have a valid driver’s license?
- Are they a safe driver?
- Would they be able to pay for damage if something goes wrong?
Remember, if something bad happens, you could be left with the bill, even if you weren’t driving.
Key Takeaways
- Car insurance follows the car, not the driver. If someone else crashes your car, your insurance usually pays first.
- If you gave permission, the crash is likely covered. No permission = no coverage.
- A crash in your car, even if someone else was driving, can make your insurance rates go up.
- If the driver has their own insurance, it might help, but only after yours is used.
- If your car was stolen, you are usually not responsible for the damage.
