The short answer
Usually, yes, if your friend has your permission and isn't excluded on your policy. In many states and with many carriers, auto insurance follows the car. That means your coverage typically applies to an occasional driver you allow to use it. Your declarations page and policy wording are what decide it.
Whose insurance pays first
When a permitted friend causes an accident in your car, your policy is generally primary. Your liability coverage pays for injuries and damage to others, and your collision coverage, if you have it, pays to fix your car after your deductible.
If the damage is more than your limits, your friend's own auto policy may act as secondary coverage. Rules vary by state and carrier.
Permissive use vs. regular use
Carriers often treat an occasional borrower differently from someone who drives your car all the time. A friend who borrows it once to move apartments is usually a permissive user. Someone who drives it to work most days may be considered a regular driver who should be listed on your policy.
If you're unsure, ask your agent. Not listing a regular driver can cause problems at claim time.
When coverage may not apply
Check your policy for limits like these:
- The driver is specifically excluded on your policy.
- The driver didn't have your permission.
- The car was used for paid rideshare or delivery work without the right coverage.
- The driver doesn't have a valid license.
- Your policy reduces limits for permissive drivers, which some do.
How a claim can affect you
Because the claim is on your policy, an at-fault accident can show up in your claims history and may affect your premium at renewal. You'd also pay your deductible on collision or comprehensive claims. That's worth weighing before you lend your car.
Before you lend your car
- Confirm your friend has a valid license and a safe driving record.
- Review your liability limits and deductibles.
- Make sure no one you'd lend to is an excluded driver.
- Keep your insurance card in the car.
Ask an agent
CapCenter's insurance agency can review your auto policy, explain how it treats other drivers, and help you add a household or regular driver if needed. If you'd like more protection, we can also quote higher limits or bundling with your home or renters policy.