Once in a while, we need to borrow someone else’s car for whatever reason. Insurance providers are always asked is: am I covered on my friend’s car insurance?
Yes, the vehicle owner’s insurance should cover any damage to the vehicle as long as the driver:
- Has a valid license
- Has written or verbal permission from the owner
- Uses it for an outlined and agreed upon purpose
- Doesn’t prohibit any driving laws
However, figuring out who’s liable in the event of an accident is a little more complicated. When someone lends out their car, they’re also lending out their insurance. This means that if a borrower gets into an accident, the owner’s insurance will be affected. Most states will allow comprehensive and collision coverage to protect both the vehicle and the driver, regardless of who’s driving. If the borrower gets into an accident that was not their fault, the owner’s insurance won’t take a hit. However, if the borrower does cause an accident, it gets a little more complicated.
Non-Excluded Drivers
Beyond car insurance rates, remember that accidents may also have property and medical costs that need to be covered. This is why your auto-insurance is higher if you list a teenage driver as a primary user of the vehicle. This is what’s called a non-excluded driver. This means that there is secondary coverage for anyone listed on vehicle’s insurance policy. Although you may want to exclude your teen driver to get a better rate, you may end up paying more. Only a few states (Kansas, Michigan, New York, Virginia, and Wisconsin) won’t allow exclusions, unless they pose a specific and serious threat such as multiple DUIs.
Be sure to check to see if your policy has an omnibus clause. This means that the vehicle’s insurance will cover any family members or dependents. As long as they have the vehicle owner’s permission to drive the car, they’ll also be covered under the same policy.
Excluded Drivers
Generally speaking, if your vehicle is taken without your consent or stolen, you won’t be accountable for any damages. This changes if an excluded driver takes your car with your permission, as your coverage needs to cover them. This means that if an excluded driver gets into an accident, both the vehicle’s owner and borrower are responsible for all damages.
If you live in a no-fault state, the owner is not responsible for personal injury. However, the owner is still responsible for any personal liabilities. This means if the borrow’s insurance cannot cover all the damages, the owner’s insurance will have to pay for the rest.
What if I’m Uninsured?
You can still borrow your friend’s car if you’re uninsured, but there are a few things you need to remember about borrowing your friend’s car:
- If you get into an accident, the vehicle’s owner is liable for all damages
- If you take the vehicle without the owner’s permission, you’re accountable for all damages
You can understand why a vehicle’s owner might be hesitant to let you borrow their vehicle if you’re uninsured. If you do have insurance and you get into an accident with a borrowed car, your insurance would partially pay for any damages.