What Happens if Someone Else Is Driving My Car and Gets Into an Accident?
Assume your best friend needs to borrow your car for a few hours to run errands while their car is being repaired. On the one hand, they wouldn't ask unless they absolutely had to—their cat is out of food, and their brother needs a ride to work. They, on the other hand, are a fast driver who has been in a few fender-benders.
Before you hand over your keys, make sure you understand how insurance works if you let someone else drive your car. What if your friend causes an accident and injures another driver? What if they get a citation? Consider the answers before allowing anyone else to drive your vehicle. It's also a good idea to be aware of these potential issues before driving someone else's car.
Car Insurance Usually Follows the Vehicle
In general, claims arising from the use of your car—regardless of who is driving it—will most likely be filed with your insurance company first, as long as the driver has your permission to drive.
- The extent to which coverage applies depends on state law, your specific auto insurance policy, and the circumstances.
Bodily Injury and Property Liability Insurance
If a friend, grandchild, or roommate borrows your car and injures or damages someone else's property, your auto insurance's bodily injury liability or property liability coverage will usually cover the claim. If the claim exceeds your coverage limit and the driver has insurance, their coverage may cover the difference.
Comprehensive and Collision Coverage
Collision coverage covers the costs of accident-related damage to your vehicle, whereas comprehensive coverage covers the costs of non-accident-related damage, such as a bird hitting the windshield.
If you do not have comprehensive or collision coverage and a friend borrows your car and damages it, your insurance company will not pay for the repairs. Even if your friend has collision or comprehensive coverage, it is unlikely that it will cover any damage to your vehicle. You may need to have an awkward conversation about repairs with your friend.
When the Driver’s Car Insurance Might Apply
Specific portions of your friend's insurance policy may step in to help cover costs that exceed your policy's limits or are not covered by your policy in some situations or states. Consider the borrower's coverage to be a backup policy. For example, if the person borrowing your car causes more property damage than your car insurance covers, their insurance may step in to pay the difference.
- Coverage may or may not apply depending on the situation, insurer, state, and policy wording. Before borrowing someone else's car or letting someone borrow yours, check with your insurance company to make sure you're covered.
PIP, Medical Payments, and Uninsured/Underinsured Motorist Coverage
Personal injury protection (PIP) insurance, medical payments coverage, and uninsured/underinsured motorist coverage differ greatly by state. Some states require certain types of coverage, such as PIP insurance, while others allow drivers to decline certain optional coverages (such as PIP insurance), and still others have no requirements.
The differences between states and policies can make determining financial responsibility for injuries resulting from a collision extremely difficult. Depending on the state and policy, the driver's PIP insurance may cover some medical expenses or other personal injury costs for the driver or passengers. If the driver does not have PIP but you (the car owner) do, your insurance may cover the cost of the injuries.
Contact your insurance company to learn more about your coverage for uninsured drivers' injuries and collisions, as well as how it applies to someone else borrowing your car. Request that anyone who borrows your car check with their insurer as well.
When Your Insurance May Not Cover Someone Else’s Accident
In some cases, your car insurance may not cover any damages. Before handing over the keys to anyone who isn't named in your policy, make sure you ask your insurance company about any exclusions, exceptions, or limitations. Exceptions can include:
- Lack of permission: If you didn't give the driver permission—whether they're a friend, family member, or thief—your insurance policy will most likely not cover the damage or injury they cause to others.
- Special situations: Some owner-only insurance policies only cover the vehicle's owner. Other policies allow you to exclude specific drivers, such as a household member with a suspended license, from coverage. Several insurers may offer lower settlements for claims caused by non-owner drivers.
- Non-valid license: If your friend lost their license and you still let them drive your car, your insurance company may deny any subsequent claim—and you may be held legally liable.
- Household members: If a family member is not on your insurance policy and is involved in an accident with your car, they may not be covered, depending on the insurance company.
- Commercial activity: If your best friend borrows your car to offer rideshare services, your current policy may not cover that driving.
What Happens if Someone Else Gets in an Accident With My Car?
Whose insurance pays for what is determined by a number of factors, including:
- Who is to blame?
- How many drivers were there?
- The policies of the owner and the driver
- Damage and/or incident type
- State insurance regulations
Assume your friend borrows your car to run an errand. If they are hit by another driver who is found to be at fault for the accident, the insurance company of that driver will most likely pay for the damage to your car and your friend's injuries, depending on the state and how fault is assigned.
If your friend causes an accident, your policy will most likely pay up to the policy's maximum limits for injury or damage. When the limits are reached, your friend's insurance may step in to cover any additional costs, or both of you may be sued for damages.
In another case, suppose your friend sideswipes a metal barrier, causing $1,500 in damage to your vehicle. You have collision insurance, which will help you repair the deep scrape if you pay your $500 deductible. Will your friend pay the deductible or ignore your calls?
- Show your friend where you keep your proof of insurance before handing over the keys. If they can't show proof of insurance, their driver's license may be suspended in some states, even if they're borrowing a car.
When an Accident Affects Your Rates
If your babysitter or cousin borrows your car and causes an accident, the incident will be recorded on your insurance record. Filing a claim for the damage may cause your rates to rise at your next renewal, though they may not if your friend was not at fault for the accident. Again, your insurer, policy wording, and state laws all play a role.
What About Tickets?
Typically, tickets follow the driver rather than the vehicle. So, if a friend gets a speeding ticket, it usually only affects their driving record, not yours. In some areas, traffic camera violations (such as red-light tickets) are the responsibility of the vehicle's owner, not the driver, and may not appear on anyone's driving record.
- If you weren't driving your car, you may be able to contest a camera-generated citation or ticket in some cities. You may, however, be required to identify the driver, who will be issued their own ticket.
Should the Other Driver Still Have Insurance?
Ideally, anyone borrowing your car has their own auto insurance policy. That coverage can help cover any liability costs that exceed your insurance limits, as well as injuries in some cases.
If your friend does not have insurance and is found to be at fault for the accident, you or they may be sued for additional damages, putting your assets (such as your savings or home) at risk. Non-owner insurance may be an option for those who frequently borrow cars.
- If you frequently lend your car to a specific person, such as a caregiver, check with your insurance company to see if that person should or could be added to your policy.
Frequently Asked Questions (FAQs)
My teenager let a friend borrow the car and had an accident. Who is liable?
Coverage is typically extended only to those who have your verbal permission to drive your car. If your teen borrows your vehicle without your permission, you must consult with your insurer and a lawyer to determine whether you or your insurer is legally liable for any accident-related claims.
If my drunk friend asks me to drive their car, who is liable in an accident?
Because there are numerous factors to consider, you should consult with your insurer and possibly a lawyer about your situation. Liability and coverage may be affected by state laws, insurers, policy terms, and other factors.