What happens if you lend someone your car and they get in an accident?
Asked by: Davin Roberts | Last update: August 7, 2025Score: 4.5/5 (32 votes)
What happens if my friend borrows my car and gets in an accident?
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.
How does insurance work if you lend someone a car?
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.
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 happens if I let someone use my car and they get into an accident?
If you let someone borrow your car and they're in an accident the primary insurance (car owner) covers the vehicle and secondary (car borrower) insurance comes in second. You'll want to make sure your insurance has coverage for permissive use, uninsured motorist, collision and comprehensive to make sure everything is.
What happens if I let someone borrow my car and they’re in an accident?
What happens if you don't add a driver to your insurance?
If someone in your household, who is unknown to your insurance company, gets in an accident, your insurer might rescind or cancel your policy and/or deny your insurance claim because they've been kept in the dark.
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.
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 lend your car out?
If friends don't have their own insurance, they could buy non-owner auto insurance. If they cause an accident in your car, your liability insurance would still be primary and their non-owner insurance would pick up any remainder.
What happens if I let someone borrow my car and they get pulled over?
Your driver will be responsible for the ticket, and the driver's personal car insurance costs may increase. In most cases, the owner of the car will not be responsible.
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.
Can someone drive my car if they are not on my insurance in Michigan?
In Michigan, there are three exceptions when someone else drives in which they may not be covered by your No Fault insurance: your policy excludes the driver, the driver lives out of state and doesn't own a vehicle registered in Michigan, the person didn't have permission to drive your car.
How does insurance work when driving someone else's car?
If you're specifically listed on the car owner's insurance policy, you'll be covered when driving that car – even if it's not your own. If you're not on the owner's policy, applicable coverage will again depend on consent.
How does insurance work if you borrow someone's 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.
Who is liable if someone else is driving your car?
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 ...
How does insurance work if your friend crashes your car?
Will my insurance cover an accident when someone else is driving my car? In most cases, your car insurance covers your vehicle, not you, the owner. So, the good news is, if you give your friend permission to drive your car, and they get into an accident, your insurance will probably cover it.
What happens if you let someone borrow your car and they crash it?
Contact a Car Accident Attorney in California
In most cases, your friend or family member who borrows your car will be covered by your car insurance if they are in an accident. When another driver is at fault, that person's car insurance should cover the damages caused by the accident.
What happens if someone else is driving my car and gets in an accident in Indiana?
As a rule of thumb, if someone else borrowed your car and ended up in an Indiana car accident, your insurance company will take over as long as they received oral permission from you to take your car.
What happens if someone else is driving my car and gets in an accident in Alberta?
You're lending your car and your insurance
So even if you're not driving, it's your car insurance that will respond if your vehicle is involved in an accident. This also means that you will now have a claim on your record, even though you weren't the one driving. You'll need to submit the claim through your insurance.
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 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.
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.
Is it okay to let someone borrow your car?
Although you should check your individual policy, usually, you can let your friend drive your car without violating your coverage. As long as you give the person permission and they only drive the car occasionally, there shouldn't be an issue. Accidents, however, can happen anytime.
How much does it cost to add a driver to insurance?
Most car insurance companies won't charge a fee to add more drivers to your policy, but each driver that you add to your policy impacts your policy price.
Can I add someone to my car insurance that doesn't live with me?
You typically will not be able to add a non-related driver who does not live in your home to your insurance policy. If you and a friend own a vehicle together but do not live at the same address, you may have trouble obtaining an auto insurance policy.