Does car insurance follow the car or the driver?

Car insurance follows the car rather than the driver in most cases. However, insurance coverage can differ from insurer to insurer and policy to policy. Other factors can decide whether and to what extent a person or car is covered, including the state where you live, the names listed on your insurance policy, and whether you allowed someone else to drive your vehicle.

How does insurance cover other drivers?

If someone borrows your car, they’re also — in a sense — borrowing your car insurance. That’s the case only if you allow them to drive your vehicle. Your policy’s liability coverage would pay for injury and damage they caused to any other driver and their property. If you have collision coverage, your policy will cover damage caused to your car.

If the borrower gets into an accident, how do I file a claim?

You should gather as much information about the accident as possible. Speak with your friend or relative who borrowed your car and hear their side of the story. Get the accident report from the police and contact information from everyone involved. You may also want to find out if there were any witnesses and if anyone has photos of the accident. Once you collect all the information, file a claim just as you would if you were the one behind the wheel.

If the borrower gets into an accident and it’s their fault, does this infraction go on their driving record or mine?

Auto insurance typically follows the car, not the driver. Even though you weren’t involved, you would have to pay your deductible, and your rates would likely increase following the claim. The borrower’s insurance is secondary. It only applies once you exhaust your insurance. However, if the other driver in the accident was at fault and you can prove it, their insurance will most likely cover any damages.

What happens with my insurance if a borrower uses my car and gets into an accident without permission?

If a friend or family member borrows your car without your consent and causes an accident, they’re liable for any injuries or damages in most cases. However, if the borrower doesn’t have insurance, you may have to file a claim to help cover property damages. If a thief steals your car and gets into an accident, you most likely won’t be responsible for any damages to the other vehicle. But, you might have to file a claim to cover repairs for your car.

Will I need to increase my coverage if another driver is going to borrow my car?

It’s not mandatory to increase your coverage, but it’s a good idea to do it. If you’re planning to regularly lend your car to someone else, you may want to consider adding that person to your policy to ensure you’re both covered. You may also want to add coverages that might be optional to you, like collision protection, personal injury protection (PIP), comprehensive coverage, and uninsured/underinsured motorists coverage.

Can Someone Else Drive My Car?

By Kevin Quinn and the Mercury Team

If you’re a newly licensed driver, it’s tempting to let a friend test-drive your new ride. And if you’re a parent, you might be wary of lending your car out, whether to an acquaintance or your teenagers. After all, what happens if an accident occurs? Are you on the hook for the incident? And does your car insurance cover other drivers? Before you let anyone else behind the wheel, family or not, check out our guide. We’ve compiled some of the most frequently asked questions you might have.

Does My Car Insurance Cover Other Drivers?

When someone else borrows your car, you may wonder whether your insurance will step in if something goes wrong. The answer depends on your policy, the driver, and sometimes even your state. Most auto insurance policies extend coverage to more than just the named policyholder, but the rules vary. Check with your insurance agent, particularly if you’re getting auto coverage for the first time.

Who is Allowed to Drive My Car Under My Policy?

A spouse and any household members are usually covered automatically, since they’re considered regular users of the car. And friends, family, or colleagues, i.e., occasional drivers, are often covered under permissive use, which means they have your consent to drive. Other regular users of the car are people who drive your vehicle often. In that case, your insurer may require you to list them on the policy, as some states and policies have stricter definitions of who counts as an approved driver. Failing to do that could limit your coverage, so always check with your insurer.

Does My Car Insurance Cover Other Drivers if They Get in an Accident?

Wondering whether car insurance follows the car or the driver? In general, your auto insurance follows your car. In other words, if someone borrows your car, they’re also basically borrowing your car coverage. Your policy’s liability coverage will pay for injuries or property damage the driver causes to others, and collision covers repairs to your car. Comprehensive insurance coverage will protect against those non-collision losses, including theft, fire, or hail. Keep in mind that even if someone else was behind the wheel of your car at the time of the accident, a claim can still affect your insurance premiums.

Are There Situations Where My Insurance Won’t Apply?

Yes, insurance coverage isn’t guaranteed in every scenario. For instance, if the person was driving without your permission and caused an accident, they’re liable for any damages or injuries, in most cases. If, however, they don’t have insurance, you may have to file a claim to cover property damages. And if you have an excluded or regular driver not listed on your insurance policy, your insurer may deny an accident claim.

Any driver that uses your car for commercial purposes or ridesharing, like Uber or Lyft, may not be covered by your standard policy either. In these cases, drive other car (DOC) coverage provides liability protection for that person when driving a borrowed, rented, or company vehicle.

How Can I Make Sure I’m Protected When Letting Someone Else Drive My Car?

Before letting anyone behind the wheel of your car, it’s a good idea to only lend your car to people you trust to drive responsibly and those who are automatically covered under your policy. Be sure to review your policy so you understand how it defines household drivers and permissive use.

“Not everyone you lend your car to will be covered the same way,” says Kevin Quinn, VP Claims, Auto. “Know your policy and talk to your insurance agent about any gray areas before handing over the keys.”

No matter your situation, get in touch with your insurance agent before lending out your car. That way, you know what to expect if your friend or relative gets involved in an accident. If you’re looking for reliable coverage at an affordable price, you’ve come to the right place. Talk with a Mercury agent today for a fast, free quote!

Kevin Quinn

VP, Claims at Mercury Insurance

Kevin Quinn is Vice President of Claims for Mercury Insurance, where he leads auto claims adjusting nationally. Quinn has been with Mercury since 2015 and has been in the industry – starting as a claims adjuster – for more than 20 years. Quinn received his undergraduate degree in Business Administration from New York Institute of Technology and also holds a Juris Doctor degree from California Western School of Law.