Even basic car insurance can grow complicated when it comes to drivers borrowing other vehicles or allowing someone to drive their vehicle. It begs the question, who will be covered while operating the vehicle? Will your car insurance cover you when you’re driving someone else’s car? 
Most car insurance policies follow the insured vehicle, not the driver. So if you borrow a friend’s car, their auto insurance policy should cover you and vice versa.
Does Someone Need to Be on My Auto Insurance Policy to Be Covered?
It’s nearly impossible to add everyone who could potentially drive your vehicle to your car insurance policy, and highly against recommendation. Anyone you give permission to drive the vehicle should be covered under your normal auto insurance policy.
If you’re borrowing someone else’s car, it doesn’t hurt to ask if they have full coverage or, at the very minimum, medical payments coverage along with the legally required liability insurance. Medical payments coverage can help with you and your passengers’ medical expenses in case of an accident.
Exceptions and Exclusions
There are some people that will not be covered under your insurance policy. These are called excluded drivers. You can place drivers as exclusions on your own policy, or the agency can require you to list certain drivers as exclusions. This is usually done because you live with a driver who is considered a “high-risk” driver. High risk drivers typically have poor driving records, a history of DUIs or DWIs, multiple traffic tickets, etc.
If you give an excluded driver permission to operate the insured vehicle, any damage they obtain or cause will not be covered by your insurance. On the other hand, if an excluded driver steals the vehicle, this should be covered under your comprehensive coverage.
Driving Someone Else’s Car
Before driving someone else’s vehicle, make sure they have proper insurance. If you knowingly drive a vehicle without the legally required amount of insurance, you could face legal repercussions.
It’s also important to know that you will be covered in case of an accident. A full coverage car insurance policy should include:
- Comprehensive Coverage: Comprehensive coverage provides compensation for damages to the vehicle due to fire, wind, hail, lightning, theft, vandalism and more. If the vehicle is stolen while you are borrowing it, you will want the owner to have this coverage.
- Collision Coverage: Collision coverage provides compensation for damages to the vehicle due to collision with another vehicle or object. This applies if you hit another vehicle while operating someone else’s vehicle or run over a curb, median, hit a pole, etc.
- Liability: Liability insurance provides financial assistance if the driver causes bodily injury or property damage while operating the vehicle. If you cause a wreck while driving someone else’s vehicle, this insurance will help pay for the victim’s medical bills as well as help with a possible lawsuit that follows.
- Medical Payments Coverage: This coverage, sometimes offered as personal injury protection or PIP in certain states, helps with medical expenses for the driver and their passengers after an accident.
- Uninsured/Underinsured Motorist Coverage: This coverage provides compensation for accidents involving another driver who is not carrying insurance at the time of the accident.
Wrecking Someone’s Car
Some drivers may worry about what will happen to their auto insurance rates after a crash in another person’s vehicle. Does the crash affect your credit, or theirs?
In short, both. Since the claim will be filed on the vehicle owner’s auto insurance policy, their premiums are likely to go up. Since you were driving, however, the accident will go on your driving record and can potentially raise your rates. The opposite is also true. If someone else crashes your car, your insurance rates are likely to go up. It’s important to notify your insurance agent as soon as an accident occurs after the proper emergency services are sought. Not only is this better for your relationship with your insurance agency, but it also helps to make sure that everyone involved in the accident receives the care and compensation they need.
When it comes to simple physical damages to the car, some drivers choose to pay out of pocket for the costs rather than filing the claim. With other people involved, however, there is always the risk of a later lawsuit. If you attempt to file a car insurance claim on an accident that was never reported in order to cover lawsuit costs, you may be left without coverage.
Be careful of who you let behind the wheel of your vehicle. Make sure they are reliable, have a valid driver’s license, and are not under the influence of drugs or alcohol when you hand over the keys.