What are the risks of letting someone borrow your car?
Asked by: Randy Nitzsche | Last update: July 18, 2025Score: 4.4/5 (10 votes)
Why shouldn't you let someone drive your car?
If someone is in an accident while driving your vehicle, you could be put in a difficult situation. Your premiums could go up. You could even be named in a lawsuit over property damage or injuries resulting from the incident. Make sure someone is a trustworthy driver with a good record before giving them the keys.
How do you safely let someone borrow your car?
Make sure that person's driver's license is legal and valid.
Check in with your car insurance company to find out their rules concerning someone else driving your vehicle and what they would cover if a car accident occurred while that person was driving.
What are the risks of letting someone else drive your car?
Accidents involving someone else driving your car can affect your insurance rates and claims, especially if you have had other recent accidents or a car crash. Insurance companies may opt to raise your rate, revoke your safe-driver discount, or even cancel your coverage depending on the circumstances.
Can you get in trouble for letting someone use your car?
In any case, you won't go to jail assuming you didn't deliberately cause a car accident or steal your friend's car, and it's not illegal (in the US) to lend somebody your car even if they don't have any insurance. Obviously, one would still need a driver's license. (Source.)
Auto Insurance Claims Process: Not-At-Fault Accident
What happens if my friend borrowed my car and gets in an accident?
Usually, a car insurance policy covers the vehicle itself, not the person driving it, and that means the liability coverage (which is required by California law) should cover the friend. California is an at-fault state, which means the driver responsible for an accident is the one whose insurance will be the primary ...
Can my son drive my car if he is not insured?
Most insurers cover someone else driving the policyholder's car with their permission once in a while. But, if you're going to start driving one of your parent's cars regularly, you'll need to be added or named on their auto insurance. You can't legally drive your parents' car without any insurance at all, either.
Why shouldn't you let someone borrow your car?
If a friend takes your car without your consent, your insurance probably won't cover them. Another circumstance where your insurance may not cover someone you lend your car to is if they're excluded from your policy. Excluded drivers are usually family or household members you choose to exclude from your policy.
Am I liable for someone driving my car?
Most auto insurance policies in California have provisions that cover occasional drivers, meaning if a friend borrows your car with your permission and gets into an accident, your insurance likely has you covered. The coverage typically extends to liability for injuries and property damage.
What are the consequences of letting someone else drive your rental car?
When someone is driving a rental car, the rental company assumes that their name is on the contract. If an unauthorized driver is in control of the vehicle, all insurance plans or coverage options offered by the rental company are null and void. The unauthorized driver's insurance will be used to pay for all damages.
Can I be sued if I let someone borrow my car?
Vehicle Owners Are Liable Under California Law
This law holds a vehicle's owner responsible for collisions caused by the driver of the vehicle – even if the driver is not the owner.
Can I let my friend borrow my car for a week?
While there are exceptions, car insurance generally follows the car and not the driver. Allowing another licensed driver to borrow your vehicle is known as "permissive use," which means you give someone, who isn't listed on your car insurance policy, permission to operate your vehicle.
How does insurance work if you let someone borrow your car?
If you let someone borrow your car, remember the phrase, “Insurance follows the car.” When someone borrows your car, they're essentially borrowing your insurance, too, as long as they had your permission to do so.
Whose insurance covers a borrowed car?
Generally, insurance coverage follows the vehicle rather than the driver. So in most instances, as long as the owner of the car has insurance, it's covered even if someone other than the owner is driving it — as long as they have the owner's permission.
Can I give permission for someone to drive my car?
A permissive user is a driver who has permission to use your car, while a non-permissive user is someone who drivees your car without explicit permission to do so. In most cases, permissive users are covered by your insurance policy, but you want to check to see if coverage limits are lower for these types of drivers.
Should I let my son borrow my car?
One of the primary concerns when lending your car to family members, especially those not listed on your insurance policy, is the potential risk it poses. Insurance companies may refuse to cover the damages if the person driving the car is not a named insured.
What happens if I let someone borrow my car and they crash?
What Happens If Someone Borrows My Car and Has an Accident That Wasn't Their Fault? If the borrower of your vehicle has an accident and another driver is at fault, California's fault rule comes into play. You and the borrower would both have grounds to file claims against the at-fault driver's insurance policy.
Can my son drive my car if he doesn't live with me?
If your son doesn't live with you but needs to borrow your car, he can do so with your permission. It is known as permissive use, which means that when someone who doesn't live with you gets permission to borrow your car, they are also “borrowing” your auto insurance coverage.
What happens if my friend is driving my car and gets in an accident?
If your friend or any family members get into an accident while behind the wheel of your vehicle, liability will also take into account whether or not they had driver's permission. California's laws on insurance coverage mean that the car insurance will follow the vehicle, no matter who is driving it.
What are three things you should do before lending your car to a friend or family member?
Confirm your friend or family member has a valid driver's license. Check to make sure your insurance information and car registration are in the vehicle. Understand your personal auto policy. If you're unsure of coverage, contact your insurance representative and ask any questions you may have.
Why shouldn't you let people drive your car?
The financial risk can be severe if that person leads the vehicle to an accident. The company is unlikely to respond to a claim in that case, and it will affect the insurance premium and drive it up despite the mishap not being your fault.
Can my husband drive my car if he is not on my insurance?
It depends on your insurer and your particular policy. For example, coverage rules and regulations may be different if the driver lives in your household and could, or should, be listed as a named insured on your policy, but is not; or, if the driver is listed on your policy as excluded.
What happens if I don't add my teenager to my car insurance?
Failing to add your teenager to your auto insurance can lead to coverage denial, legal penalties and policy cancellation. Lack of driving experience and perceived higher risk contribute to higher car premiums for teen drivers.
What happens if someone who isn't on your insurance crashes your car Progressive?
If an unauthorized driver not on your insurance causes an accident, your liability coverage may not apply. However, with collision insurance, it covers damages to your vehicle if a friend crashes it.
Does Geico allow permissive use?
Most of the big auto insurance companies — Allstate, AAA, GEICO, and USAA — allow for permissive use, but you should always confirm your policy details. If you have a named driver policy with any of those companies, you will not have permissive use.