What are the risks of letting someone else drive your car?
Asked by: Corine Rice | Last update: August 27, 2025Score: 4.7/5 (75 votes)
- Permissive Use. ...
- Coverage Limits. ...
- Excluded Drivers. ...
- Borrower's Insurance. ...
- Liability in an Accident. ...
- Increased Premiums. ...
- Unauthorized Use.
Is it a bad idea to let someone else drive your car?
Generally it is not a good idea to own a car and let someone else drive it, not unless you have very significant insurance coverage on the vehicle which protects you. You also will need to reveal to the insurance company the location of the vehicle and where it is garaged.
What are the risks of letting someone borrow your car?
You may not be covered if the borrower uses your car for business purposes. If your friend drives your car to deliver goods, transport passengers, or perform any other commercial activity, your personal insurance policy may not cover the accident.
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 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.)
Does Insurance Cover Someone Else Driving Your Car?
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.
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.
What happens if an unauthorized driver wrecks a rental car?
If an unauthorized person drives the rental car and causes an accident, then you may be responsible for paying for any damage to the vehicle yourself rather than your insurance company or the rental car company (even if you bought a waiver).
Can I lend my car to a friend to drive?
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. If they're involved in an accident, your auto insurance may pay for the damages and injuries, up to your coverage limits.
Do police know who is driving a rental car?
The police will get the owner through ANPR. If the car was used in a bank robbery, they will contact the owner, who will have the name and details of the person who had it at that time. But on the side of the road, the cop can't know who the rental agency rented it to, unless he calls them.
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 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.
Does Geico cover permissive use?
Which insurance companies offer 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.
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.
Can I give permission for someone to drive my car?
Most of the time, as long as you gave a driver permission to borrow your car, it's likely not a problem for them to drive your car, even if they're not on your car insurance policy.
What happens if someone borrows 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 ...
What happens when you let someone else drive your car?
Contrary to popular belief, car insurance typically follows the car — not the driver. If you let someone else drive your car and they get in an accident, your insurance company would likely be responsible for paying the claim, depending on the coverages in your policy.
How does insurance work when you lend your 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.
Does insurance go up if you add a driver?
Typically, adding drivers to your policy can increase your premium. For example, there is a reason adding a teenage or newly licensed driver to an auto policy can result in an increase in insurance premiums.
What happens if I let my friend drive my rental car?
Are There Any Fees to Be Aware Of When Adding a Driver? Adding an extra driver comes with a per day, per person charge as well as potential other fees that you should keep in mind. If the additional driver is under 25, there could be a Young Renter fee as well.
What are the risks of renting a car for someone else?
Use caution when you rent a car and put an additional driver on the reservation. One of the risks of renting a car for someone else is that if they get into an accident while driving the rental car, you may still be responsible for the expenses, depending on your collision insurance.
Can I drive a rental car if it's not in my name?
While you can't rent a car in your name for someone else, you can rent a vehicle and then add someone else as an additional driver on the agreement. Here's everything you need to know about adding an additional driver to your Hertz car rental.
Can my wife drive my car if she's not on my insurance?
Usually, yes. Your car insurance coverage should be able to extend to anyone else driving your car. Even if someone isn't listed on the policy, they can operate your vehicle. If you explicitly name someone as an excluded driver in your policy, however, none of this applies to them.
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 you crash your parents' car?
As a general rule, car insurance follows the vehicle, not the driver. That means the owner of the vehicle would file a claim with their insurance to cover any damages.