That is why it is important to know what is included in your policy and your liability if you lend your car to someone. Otherwise, that individual should be added to your policy. If you lend your car to a friend, roommate or neighbor, or someone not listed on your policy, they would be covered if they were driving your car periodically and not on a regular basis.

In some instances, an adult resident of your household can give him or herself permission to operate your vehicle and be covered by your insurance. Permissive use means giving a friend or family member consent to drive your car. This could also include anyone who borrows your car, provided you gave him or her permission. Generally, anyone living in your household will be covered by your auto insurance. Auto Insurance Coverage and Permissive Use This is the standard procedure in at-fault insurance states. If your friend is not to blame for the accident, the other driver’s insurance would be expected to pay for any damages caused. If damages exceed your policy limits, your friend’s insurance would act as secondary coverage. If you let a friend borrow your car and he or she causes an accident, your auto insurer would be responsible for paying for damages to the other driver and his or her passengers, up to the limits of your policy. This is true even if the driver has insurance. In the event of an accident, your auto insurance would act as primary coverage. This is because most insurance policies follow the car, not the driver. When lending someone your car, you are also lending him or her your auto insurance. Insurance Follows the Car, Not the Driver An initial consultation with a member of our legal team is free and confidential. This includes a recovery of $2 million for a young adult injured in a highway accident. We have helped many accident victims pursue maximum compensation and recovered millions for our clients. Sigman Janssen discusses these factors in further detail below and what you should be aware of if you decide to lend your car out.

There are multiple factors that may affect liability and the amount paid out to cover damages. If it does happen, it is important to know whether you may be held liable for damages.

When you loan your car to a friend or family member, there is a risk that he or she could get into a car accident.

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