Does car insurance cover driving a friend’s car?

If you get into a collision while driving your friend’s car, their auto insurance will usually cover you and any damages. Even if you have your own auto insurance policy, your friend’s policy will primarily pay for any costs resulting from an accident. 

While most auto insurance policies focus on an insured vehicle rather than the person driving, insurance coverage can get confusing if you or your friend are uninsured or underinsured or have a suspended license. 

Whose insurance provides coverage when you are driving a friend’s car?

When you drive another person’s car, most auto insurance policies follow permissive use coverage. Permissive use coverage means the plan covers any motorist you list on your coverage policy or any person you allow to operate your vehicle. 

As long as you have permission to drive from the owner of the vehicle, their car insurance will usually cover you if you get into an accident.  If you find yourself in a situation where you need car insurance for a vehicle you don’t own, such as a friend’s or roommate’s car, you may want to extend your research on how do you get car insurance for a car you don’t own.

However, whether permissive use coverage applies to a collision that occurs while driving your friend’s car depends on your situation, your and your friend’s insurance policies, and your state’s insurance laws.  

Read more: Does car insurance follow the car or the driver? 

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Does permissive use coverage always apply?

There are certain cases when permissive use coverage does not apply when you drive another person’s car:

• If you do not have a license or are a young, inexperienced driver, your friend’s auto insurance policy will try to evade any responsibility in the event of a crash. 
• If you lend your car to a friend with little driving experience or a suspended license, your auto insurance coverage will not cover any costs if there is a crash.  

In both of these cases, most auto insurance companies offer coverage if you list these young or inexperienced drivers on your policy. Usually, insurance companies perceive young drivers as high risk and charge higher rates.

Additionally, insurers may be hesitant to take responsibility for costs if you regularly drive your friend’s car but are not listed on your driving friend’s car insurance policy. You may want to consider non-owner car insurance if you are driving a friend’s or roommate’s car on a regular basis.

Will permissive coverage apply if I drive a friend’s car for job-related purposes?

Suppose you drive your friend’s car to work for a ride-sharing or other freelancing service. In that case, permissive coverage will only apply if your driving friend’s car insurance policy explicitly states that coverage applies for business-related permissive use. 

If your friend’s auto insurance policy doesn’t apply for business-related permissive use, you or your friend may have to pay for the costs of a crash or face legal consequences. 

What if my friend is underinsured or uninsured?

If your friend is underinsured, your own insurance will likely cover the costs that exceed your friend’s insurance limits. Usually, whether your auto insurance policy will cover you depends on your friend’s type of car insurance.

Your car insurance will cover costs if your friend has a policy that only features the state’s minimum liability coverage and the collision results in major damages that exceed your friend’s policy limits. Sometimes, your car insurance policy will also cover exceeded costs if you’re sued for damages. 

However, if you drive your friend’s vehicle and are uninsured, your auto insurance policy may not cover you at all. In this case, you will have to pay out of pocket for any damages, especially if you are at fault for the accident. 

To avoid any financial complications, it is wise to consult with your friend to ensure that their vehicle is insured before you drive it. You may also want to contact your insurance company to determine if they will cover you while driving another person’s vehicle. 

What if I am also an uninsured driver?

You will be responsible for paying for any damages that occur in the event of an accident if you are an uninsured driver for whatever reason and you get into an accident with your friend’s car. It is also possible that you may be sued for any damages that occur. 

If you don’t have auto insurance or don’t own a car and plan on driving your friend’s car for an extended period of time, you may need to purchase a non-owner car insurance policy. 

A non-owner policy will cover you if you drive another person’s car and end up getting into a collision. Fortunately, non-owner policies tend to be relatively affordable, especially compared to the costs that can ensue if you end up in an accident without auto coverage. 

Additionally, non-owner policies may help you if you plan on buying a car of your own in the future. Usually, if you provide proof that you previously had coverage, most car insurance companies will offer you lower rates when you apply for coverage again. 

Understanding Auto Insurance While Driving a Friend’s Car

If your friend has enough auto insurance coverage to cover the costs of a crash while you drive their car, their insurance policy will usually cover the damages. 

Of course, you must have permission to drive your friend’s car, have a viable license, and be a low-risk driver. Otherwise, your auto insurance policy may have to chip in for any costs. If you and your friend are uninsured, you will likely have to pay for any expenses out of pocket. 

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Case Studies: Car Insurance Coverage When Driving a Friend’s Car

Case Study 1: Permissive Use Coverage

Sarah and John are close friends, and Sarah occasionally borrows John’s car to run errands. One day, while driving John’s car, Sarah accidentally rear-ends another vehicle at a red light. Thankfully, both Sarah and the other driver are unharmed, but the vehicles sustained significant damage.

In this case, John’s car insurance policy, which includes permissive use coverage, would likely cover the damages caused by Sarah’s accident. Since Sarah had permission to drive the vehicle, the coverage extends to her as well.

Case Study 2: Uninsured Friend, Insured Driver

David and Emily are roommates, and David doesn’t have car insurance. One weekend, David asks Emily if he can borrow her car to visit his family. Emily agrees and lends him the car. Unfortunately, on his way back, David loses control of the vehicle and crashes into a tree, causing substantial damage to the car.

Since David is an uninsured driver, Emily’s car insurance policy won’t cover the damages to the vehicle. As a result, both David and Emily are responsible for covering the repair costs out of pocket.

Case Study 3: Underinsured Friend

Michael lends his car to his friend Lisa, who has her own auto insurance policy with minimal liability coverage. While Lisa is driving Michael’s car, she collides with another vehicle, resulting in severe injuries to the occupants. Lisa’s insurance policy only covers a portion of the medical expenses and property damage caused by the accident. (For more information, read our “What if an uninsured friend wrecks my car?“).

However, Michael’s comprehensive auto insurance policy includes higher liability coverage. In this case, Michael’s policy would likely cover the remaining expenses that exceed Lisa’s policy limits, providing financial protection for both parties involved.

Case Study 4: Non-Owner Car Insurance

Alex is in between owning a car but frequently borrows his friend Mark’s car for transportation. To ensure adequate coverage, Alex decides to purchase a non-owner car insurance policy. One day, while driving Mark’s car, Alex is involved in a collision that damages both vehicles.

Since Alex has a non-owner policy, it would cover the damages to Mark’s car, ensuring that both Alex and Mark are protected financially.

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