If a friend borrows your car and causes an accident, your insurance policy pays for any at-fault damages. A rule of thumb to remember in this situation is “car insurance follows the car, not the driver.” It’s still a good idea to make sure whoever drives your car has their own insurance policy, though.

Are you insured if you drive someone else’s car?

Usually, yes — your car insurance coverage should extend to anyone else driving your car. So if you lend your car to your best friend, your sister or even your second cousin, your insurance is most often the insurance that will pay in the event of an accident.

Can a car insurance policy cover a driver who borrowed a car?

In most cases, if a driver is permitted to operate an insured’s vehicle, the policy of the covered auto will pay for damages caused by the motorist up to the limits on the policy.

Who is responsible for your car if your friend borrows it?

It’s your insurance policy that is responsible for your car when someone else driving it is involved in an accident. A common myth is that if your friend borrowing your car has insurance, then it’s your friend’s insurance policy that covers any damages. Not true.

What happens if someone borrows your car without asking?

However, any damage to your car will likely have to be covered by your insurance. It gets hairier if someone you know borrows your car without asking. In case of an accident, generally their insurance will be considered the primary coverage and yours would be secondary.

Who is covered if you get into an accident in your car?

Let’s start with the first case: excluded person named on the policy gets into an accident in your car. When you initially apply for car insurance, you are asked to list everyone in your household. Some car insurance policies cover every household member, while others may only cover licensed members.