What happens insurance-wise if a friend drives my car?

Okay, so here’s the thing – you’ve got a good friend, a buddy, who needs a favor. They want to borrow your car. You trust them and you want to help them out, so you’re just about ready to say “Sure thing!” But, being the “responsible adult” you are, you have a question – what about car insurance? How does that work when a friend drives your car (with your permission, of course)?

Here’s the deal:

Most car insurance policies will follow the vehicle itself if your buddy occasionally needs to borrow your car to run errands, go on a day trip, and so on. However, keep in mind that car insurance isn’t just based on the car – it’s also based on you, the primary driver. If your buddy turns into a real mooch and starts borrowing and driving your car more than you do, you may need to have them added to your policy. (And hopefully, your buddy will realize what a true friend you are.)

This is something we say a lot, but make sure to read your policy to see what your specific coverage would do in this scenario. Not all policies are the same, so you need to understand what coverage you have.

Okay, now for the reverse situation: what if you borrow a friend’s car…and then get into an accident? Who would pay? Well, their car insurance would probably pay first. But if their limits are exhausted, your own insurance will probably be next up. (Also your friend will probably never let you borrow their car ever again, FYI. Just a head’s up.)

So, that’s what happens if someone wants to borrow your car. Your insurance should follow your vehicle, so your friend should be covered. But take note – if you borrow someone’s car and get into an accident, your insurance could come into play if their limits are exhausted.

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