Does my car insurance cover damage caused by a driver who borrowed my car without permission?

You may be rightly annoyed if someone borrows your car without permission, but if they cause damage to it, you may wonder who will pay. You may want to know if you can turn to your car insurance coverage for help or if the other person will be fully liable.

Does car insurance cover damage caused by a driver who borrowed my car without permission? We understand that this can be a worrying time as you fret over finances, so we have asked the question and provided answers below.

When Your Car is Damaged by a Driver Who Borrowed it Without Permission

Insurance companies consider this non-permissive use, and your insurance company usually will not cover the damage caused in this situation. If that driver has their auto insurance, they should turn to that company.

However, if the driver does not have any insurance of their own, they will be personally liable for the repair costs.

If the driver borrowed your car with permission, you could claim against your comprehensive coverage in this situation. Here, the insurance company considers this to be “permissive” use, and the normal levels of coverage should apply. (For more information, read our “Does Car Insurance cover me if I borrow a car?“).

However, remember that you must pay a deductible before you can claim in this situation. For more information on your out-of-pocket commitment, read about car insurance deductibles.

Reporting Your Vehicle Stolen

Depending on the circumstances, you may want to report this type of event as theft. In this case, the driver may be criminally liable, but you may also be able to claim against the comprehensive part of your policy under the vehicle theft provision.

For full information about what comes under this type of policy, learn more about comprehensive car insurance.

Read more: Does my car insurance cover a stolen car?

Proving Permission to Your Insurance Company

Unfortunately, it can be difficult to prove that you did give someone explicit permission to drive your car. Ideally, you should do so in front of an impartial witness. Otherwise, if you cannot prove that you permitted them and they were involved in an accident, you cannot turn to your insurance company for help. (For more information, read our “Does my Car Insurance cover other drivers of my car?“).

Case Study: Does car insurance protect against damages caused by unauthorized borrowers?

Case Study 1: John’s Unfortunate Car Loan

John owns a car and has comprehensive car insurance coverage. One day, his friend Tom, without permission, takes John’s car for a joyride and ends up causing significant damage to the vehicle. John, devastated by the incident, contacts his insurance company to inquire about coverage for the damages caused by Tom. (For more information, read our “Does my car insurance cover damage caused by a friend who borrowed my car and got into an accident?“)

The insurance company informs John that since he did not give explicit permission for Tom to drive the car, the damages caused by Tom’s actions are not covered under his policy. John is left to bear the financial burden of repairing his car on his own, as his insurance company denies the claim.

Case Study 2: Sarah’s Stolen Car Misfortune

Sarah’s car is stolen from her driveway by a stranger who found the keys left inside the vehicle. Sarah, having comprehensive car insurance, files a claim with her insurance company to cover the loss and damages resulting from the theft. During the investigation, it is revealed that Sarah had not given permission to anyone to borrow her car, and the person who stole it was not authorized to use the vehicle.

The insurance company verifies the circumstances and informs Sarah that her car insurance policy does cover the damages caused by the unauthorized driver. Sarah’s insurance company promptly processes her claim and provides the necessary coverage to repair or replace her stolen vehicle.

Case Study 3: Michael’s Regrettable Loan to a Friend

Michael lends his car to his close friend James, who mistakenly collides with another vehicle while driving. Unfortunately, Michael discovers that his insurance policy explicitly excludes coverage for damages caused by unauthorized drivers, even if they are known to the policyholder.

When James returns the damaged car to Michael, he is faced with the financial responsibility of repairing the vehicle. Michael learns a valuable lesson about the limitations of his car insurance coverage and decides to revise his policy to include protection for damages caused by unauthorized borrowers, to avoid future financial setbacks.

A Final Word on Insurance For Someone Who Uses Your Car Without Permission

Your car insurance will not cover damage caused by someone who took your car without permission. The driver who borrowed your car without permission would be liable unless the damage was the responsibility of a third-party driver.

If the driver who borrowed your car has insurance, they could turn to that company for support. Your comprehensive car insurance will not cover the situation as it only covers “permissive” use.