Overview
In most cases, auto insurance follows the car, not the driver. If you let a friend or family member borrow your vehicle and they cause an accident, your own liability policy is typically the primary coverage that pays for the other party's injuries and damage, and the driver's personal policy may provide secondary coverage if your limits run out. The rules change if the driver was excluded from your policy, didn't have permission, or you knew they shouldn't be driving. Here's what to expect.
Frequently Asked Questions
What happens if someone else is driving my car and gets in an accident?
Your auto insurance is generally primary. Because liability coverage attaches to the vehicle, your policy pays for injuries and property damage the borrowing driver causes to others, up to your limits, as long as the driver had your permission. If the damages exceed your limits, the driver's own auto insurance typically acts as secondary coverage. Your collision coverage, if you have it, would repair your own car, subject to your deductible.
What is permissive use?
Permissive use means you gave the driver permission — expressed or implied — to use your car. Most personal auto policies cover permissive drivers automatically, which is why lending your car to a friend for an errand is covered. Coverage can be disputed if the driver took the car without asking, used it far outside what you allowed, or is specifically named as an excluded driver on your policy.
What if the driver was excluded from my policy?
If you signed a named-driver exclusion for that person — common for a household member with a bad driving record — your insurer generally won't cover any accident they cause in your car. In that situation the driver's own policy, if any, would be the only coverage, and you could be exposed personally. Never lend a car to someone you've excluded from your policy.
Can I be held responsible for lending my car to a bad driver?
Possibly, under a theory called negligent entrustment. If you lent your car to someone you knew or should have known was unfit to drive — intoxicated, unlicensed, or with a history of reckless driving — an injured person may be able to bring a claim against you directly, beyond your insurance. Ordinary lending to a licensed, competent driver doesn't create this risk.
Will my rates go up if someone else crashed my car?
They might. An at-fault accident under your policy can affect your premium at renewal even though you weren't driving, because the claim is paid by your insurer. If the other driver was at fault instead, the claim goes to their insurance and your rates are less likely to be affected. If you were injured as a passenger or the other driver caused the crash, a free case review can explain how to pursue your own claim.
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Get A Free Case Review →This page is for general informational purposes only and does not constitute legal advice. Laws vary by state and every case is different. Contact us to discuss the specific facts of your situation.
