Does my insurance cover if someone else is driving

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The cleanup from a car crash can be messy. It can get messier if you weren’t driving your car but, instead, a friend was behind the wheel. Part of the complication surrounds who pays if your friend crashes your car.

Buckle up as we take you down the road of this potentially bumpy issue.

Car Insurance Normally Follows the Vehicle, Not the Driver

Auto insurance usually follows the car, not the driver. So, if you let a friend borrow your car, your own auto insurance is typically primary for anything that might happen to your car or the driver during that time. For instance, your collision insurance probably will cover damage to your vehicle and your car liability insurance can cover damage or injury to another driver that your friend causes.

Your friend’s insurance normally wouldn’t cover damage from a crash when they’re driving someone else’s vehicle.

Your insurance generally pays for the friend’s crash, as long as your friend is a licensed driver and doesn’t regularly borrow your car. (if they’re a regular driver of your car they should be listed on your policy anyway.)

Your friend’s insurance would be considered secondary coverage if your insurance limits are used up because damage and injury bills exceed your policy amounts..

However, not all policies are alike in this regard. For instance, certain auto insurance policies exclude other drivers—even family members in your household—unless your policy specifically lists those drivers. These “step-down” policies are generally sold as very cheap policies by sub-standard carriers. One reason they’re so cheap is because they exclude everyone except the primary driver or offer only limited coverage for other drivers. If you’re buying a standard policy from a respectable auto insurer, you won’t have to worry about this.

Also, you may not even be responsible for damage or injuries arising from a wreck when your friend is behind the wheel of your car. If the crash isn’t the friend’s fault, the financial responsibility may rest with other drivers who are at fault.

Permissive vs. Non-Permissive Use

“Permissive use” simply means that your friend had permission to drive your car.

What happens if a friend borrows your car without your permission (known as non-permissive use)? In some instances, your friend’s auto insurance will kick in as the primary coverage—not your coverage. But if your friend has no auto insurance, you may need to turn your policy to cover damage or injuries.

Here’s another twist. Let’s say the wreck involving your friend causes $17,500 in damage to another person’s car, but your car liability insurance limit for property damage is $10,000. In this situation, your friend’s auto insurance might have to make up the $7,500 gap.

Even if your own auto insurance policy is enough to cover the entire bill for damage, your insurer might try to recover money from the friend’s auto insurance company—a process known as subrogation.

Other Reasons for Claim Trouble

Personal injury attorney Patrick Salvi, managing equity partner and chairman of Waukegan, Illinois-based law firm Salvi, Schostok & Pritchard, says that if you let a friend borrow your car knowing they weren’t fit to drive—say they were drunk or had racked up numerous traffic violations—you might be held liable for damage or injuries connected to other motorists.

Furthermore, if your friend was texting while driving or otherwise breaking the law, your insurance company could deny a claim for damage or injuries associated with your car.

Insurance Rate Increases

Even if you weren’t in the car at the time, a wreck your friend causes in your vehicle may cause your auto insurance rates to go up at renewal time.

You could see an even bigger jump in your rates if your friend has been living in your home and has been regularly borrowing your car, but you didn’t inform your insurance company about this arrangement. The insurer will adjust the rates to properly reflect the drivers, or might pay the claim but cancel your policy.

Les Masterson has more than 20 years of experience in journalism, editing and content creation. In his career, he has covered everything from health insurance to presidential politics.

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You may have to reset your favorite radio stations and move your seat back into place after letting someone else drive your car. However, a much more critical issue is whether your car insurance company will cover damage if someone else crashes your car.

The good news is that your car insurance company will likely pay to repair your car if it’s involved in an accident while someone else drives your car. One key is whether the person has permissive use.

Now you must be thinking about what permissive use means. Read the article and get the answers to all your questions.

Key Highlights

  • Car insurance covers other drivers regardless of who’s driving it at the time of the accident as long as the driver has permissive use.
  • Your insurance policy may not cover the car damage if the person driving your car is listed as an excluded driver on your car insurance policy.
  • If you don’t own a car but borrow your friend’s car, you might need to have non-owner car insurance.
  • A car insurance policy covers you if someone steals your car and gets into an accident.

Does car insurance cover other drivers?

Car insurance policies follow the car — not the driver behind the wheel.

So, typically your car insurance covers other drivers regardless of who’s driving it at the time of the accident as long as the driver has permissive use. Permissive use means that you gave the person permission to drive your car.

There are exceptions, though.

When does car insurance not cover a person driving your car?

There are times when an insurance company may not cover car damage when another person is driving your car.

For instance, you may not be able to file a claim if either:

  • The driver doesn’t have permissive use
  • The person is listed on your car insurance policy as an excluded driver

Here are other examples of when an insurance company may not cover you or you’ll have to pay a higher deductible if someone gets into a crash while driving your car:

  • “Named-driver-only” insurance policies cover only those listed on the car insurance policy and don’t extend coverage to permissive users.
  • “Step-down” insurance policies lower liability coverage to your state’s minimum requirements for permissive users, even if you pay for higher limits.
  • Double deductibles for collision claims when a non-named driver is at the wheel.
  • Insurance policy coverage won’t extend to a rental car.

Another thing to remember when you lend your car. If your friend gets into an accident with your car and you file a claim, your rates will likely increase because it’s your car insurance policy that’s covering the car. But if someone else gets a ticket while driving your car, the infraction will be charged to your friend because he operated the car.

If you want more detailed information on this topic, read “Insurance follows the car.”

Can you get car insurance if you don’t own a car?

If you don’t own a car but borrow your friend’s car to get around, you may want to explore non-owners car insurance.

Non-owners car insurance is typically an option for high-risk drivers. An insurance company may require buying extra liability coverage to maintain a driver’s license. People who frequently borrow cars can also get this coverage.

That way, you have continuous car insurance coverage, which an insurance company looks for when setting rates. If you have a gap of a few years of car insurance coverage, a company may charge you much higher rates than if you always have insurance.

Non-owners insurance costs much less than a standard auto insurance policy. Car insurance companies charge an average of $474 for a non-owners insurance policy.

Also, divers with DUI convictions may be required to carry an SR-22.

An SR-22 is a certificate of insurance for drivers who have been convicted of serious driving offenses, such as DUIs, reckless driving and driving without insurance. A state may require that drivers convicted of those offenses file an SR-22 to keep their license and get behind the wheel.

The average cost of a non-owners policy with an SR-22 after one DUI conviction is $1,752.

Find out more about non-owner SR-22 insurance.

Does my car insurance cover other drivers if my car gets stolen?

A car insurance policy covers you if someone steals your car and gets into an accident.

The thief’s car insurance company likely won’t pay for the damage. Instead, it will be up to your auto insurance.

However, your car insurance rates won’t increase since you didn’t give permission to another person driving your car and had nothing to do with the damage.

How do I file an insurance claim if a person driving my car causes a crash?

Your car insurance is generally the primary insurance that will pay for damages and injuries that your friend caused if you gave permission to drive your car.

Your collision coverage will handle damages to your car, but you have to pick up the deductible. Liability coverage insurance will handle the other driver’s medical bills and damaged car.

Your friend’s auto insurance will kick in if the car accident caused damage and injuries above your coverage level.

If someone else crashes your car, you should follow the same claims process:

  • Get driver information from others involved in the crash.
  • Take photos of the damage.
  • Report the accident to your car insurance company.

The insurance company will investigate the claim and you’ll get notified of the decision.

Your auto insurance will likely cover damage if your friend gets into an accident with your car, but that doesn’t mean you should hand over the keys. Make sure you’re comfortable giving someone else permission to drive your car and that you trust your friend to drive your vehicle carefully.

Frequently asked questions

What if someone took my car without permission and had an accident?

If someone took your car without your permission and got in an accident, you or your insurance would not be responsible for the damages that person caused to other people. Your insurance typically only covers drivers you permit to use your car.

What happens if a child takes the car without permission and causes an accident?

If your child took your car without permission and caused an accident, you can ask your insurance company to pay for the damage. But this may mean that you have to file a police report against your child, and you may still be responsible for paying for the damage as their parent.

Does insurance cover someone who drives your car without insurance and gets into an accident?

If the person you let drive your car does not have insurance, they will not be able to help pay for damage if there is an accident. Your insurance company will still cover the driver, but if the damage exceeds the policy limits, you may have to pay for the rest.