Does Car Insurance Cover People Who Borrow Your Car?

By Rissa Watkins

  • Overview

    If you allow someone to borrow your car and that person gets into an accident, your car insurance will pay any liable claims. Car insurance stays with the vehicle, not the person. An exception is if you are driving someone else's car and that person does not have insurance or not enough and you are at fault for an accident. Your insurance should cover the claim. However, insurance will not cover people who borrow your car that are specifically excluded in the policy.
  • Facts

    You can be held liable for any damages caused by someone you allow to drive your car. If you don't have enough insurance, and the driver has no insurance then you must pay out of your pocket. Make sure that the person you let drive your car is a reliable and safe driver.
  • Misconceptions

    Some people think that when they are involved in an accident while driving another person's car that they get to decide if their insurance will cover it. Wrong. The insurance on the vehicle is the primary coverage, the insurance of the driver is secondary. You cannot tell an insurance company to cover the damages if there is coverage on the car itself, even if you were the one driving.

  • Options

    If you let other people drive your car frequently, you should add medical payments coverage to your policy. If the driver gets hurt in an accident, medical payments will allow that person to get medical coverage regardless of whether or not he has health insurance. Medical payments coverage will pay for injuries, up to the limits of the policy, no matter who is at fault. Check your policy for any limits or restrictions.
  • Warning

    If someone else is a frequent driver of your car, you might need to add that individual to your policy. Check with your insurance agent to find out the company's definition of frequent use. Some insurers consider a driver who drives the vehicle more than 12 times a year to be a frequent driver.
  • Effects

    Insurance companies will run a Comprehensive Loss Underwriting Exchange report, commonly referred to as a C.L.U.E. report to check for loss history information on an insured, or a particular property when providing a quote for insurance. If someone else has driven your car and was held liable in an accident, the loss will show up on this report. The report should show that you were not driving the vehicle. If it says you were driving, this can cause your rates to go up. If you find any errors, you can contact Choice Point at the site listed below in the Resources section to dispute it.
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