Can someone drive my car if they are not on my insurance? Typically, car insurance follows the car and not the driver. When someone drives your car and gets in an accident, your insurance company may be responsible for paying the claim. However, this depends on the coverages in your insurance policy.
Unfortunately, this claim goes on your insurance record, and could sometimes affect the rate of your car insurance in the future.
Generally, a variety of factors determine who is liable for the auto accident though.
Can someone drive my car if they are not on my insurance?
Anyone you permit can drive your car if they are not on my insurance. However, it may not be okay to let someone else drive your car if they are excluded from your policy, or your policy is “Limited” (which only covers drivers named on the policy.
If someone regularly uses your car, you want to add them as a driver on your policy. Otherwise, your insurance company may deny your claim. Before an accident occurs, consider calling your agent to verify if you can add another person’s name to your policy.
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How does your auto insurance cover other drivers of the car?
In some states, your car insurance is considered primary insurance if another person wrecks your car, i.e., your coverage policy can cover the vehicle damage or injuries.
If the person driving your car is at fault for the accident, your policy’s coverage may cover it in the following way:
- Collision coverage. Collision coverage can help to pay for the repairs of your car. However, you have to pay the deductible i.e., the amount you are liable for before the kick-in of your insurance.
- Auto liability coverage. An auto liability coverage can pay the bills for the damaged car or medical bills of another person resulting from the accident. This liability coverage will also cover the repairs of your vehicle and your friend’s injuries.
- Medical payments coverage. If someone driving your car is injured in the accident, medical payment coverage may pay their medical bills.
You must also understand any exceptions in your insurance. Do not always assume that your insurance can cover the accident and damages. For instance, your policy may not cover relatives in your home except you specifically name them on your policy. Specific policies may provide coverage for relatives but typically have limitations.
Also, if the person driving your vehicle is not at fault (for the accident), you may not have to worry about your insurance receiving a hit. Depending on your state, specifically in an at-fault state, the at-fault driver’s insurance will pay for the repairs of the car and your friend’s medical bills.
If someone driving your car gets in an accident with a stolen car, your insurance or friend’s insurance may be responsible for the damages since the stolen car may not have active insurance.
Ensure to thoroughly read your policy documents to know the limitations. Your agent is also in the position to answer questions about your coverage and how it protects other drivers of your vehicle.
Permissive and non-permissive
Permissive and non-permissive use refers to if your insurance will kick in when someone else gets in an accident in your car, depending on whether you gave them permission to borrow it or not.
- Permissive use
Some auto insurance policies cover the drivers you list on the policy or someone that you permit to drive your car. I.e., your insurance may cover another driver in the event of an accident if they had your permission to drive it. There may be reduced coverage in some states when another person drives your car.
- Non-permissive use
In the case of non-permissive use, you are not responsible for the damage if someone you did not give permission to gets in an auto accident. Let us say a family member drives your car without your permission. If they get in an at-fault accident, their insurance may be considered primary coverage.
You may be able to file a claim with your insurer if your friend has no insurance to cover the damages.
Ensure to read the terms and conditions of your policy, or talk to your agent to understand you’re your policy covers in your state. You can also ask the agent about excluding drivers from your policy.
Can the insurance of the person driving your car be involved in the accident?
If your insurance company covers the accident for the other driver, there may be a setback. For example, if the accident resulted in extensive damage or injuries, the cost of the claim may max out the limits (the maximum amount your insurance company will pay toward the claim) on your policy.
If this is the case, the auto insurance policy of the person driving your car and responsible for the accident may be tapped to cover the remaining costs.
Suppose the person causes an accident resulting in $10,000 in damage and the property damage limit of your policy is capped at $7,000. The policy of your friend can then be tapped to pay the remaining $3,000.
In some cases, your insurance company may still seek reimbursement from the insurance company of the driver of your car even with your high policy limits. Your insurance company will simply contact the insurance company of your friend after paying the entire accident claim to recoup costs.
The possibility of this happening depends on the terms and conditions of your policy, state law, and coverage.
What can a licensed driver without a car and insurance do?
If you do not own a car but have a license, you do not need a long-term auto insurance policy. If you have to borrow someone’s car to drive for, say 2 to 28 days, you can get temporary insurance.
Consider the insurance policy of the car owner. If it provides coverage for accident you get into, then you can drive it.
Have in mind that you may liable for specific damage depending on the coverage included in the policy. If there is no collision coverage in the policy, you may be responsible for the vehicle repairs in an at-fault accident.
You may also be liable if costs exceed the limit of the coverage on the auto insurance policy of the vehicle owner.
Before you give out your car, ensure to be on the same page with the person. Understand if someone else who needs to use your car is covered by your insurance in an accident. The person should also be willing to pay any additional costs or deductibles.
Review your insurance policy or reach out to the agent to be sure you understand the terms and conditions, coverage, and state laws on your insurance.