Does my car insurance cover damage caused by a friend who borrowed my car and got into an accident?

When a friend calls and tells you that they have crashed your car, you may wonder whether your car insurance coverage covers damage caused by a friend who borrowed your car and got into an accident. Fortunately, you don’t need to panic. We have done the research for you and provided answers below.

Comprehensive and Collision Car Insurance for Friends Borrowing Your Car

If you give your friend permission to use your vehicle, an insurance company will pay for the damage they may cause during an accident. The company should extend the same level of protection, so if you have optional coverage as well, you should receive funds to help repair damage to your vehicle.

Still, it’s best to consult some of the best comprehensive coverage car insurance companies to ensure you have adequate car insurance.

Car Insurance Permissive Use Explained

Insurance companies work based on “permissive use.” This means that if you permit your friend to use your car, the company will pay out if they get into an accident. However, it’s best if you only allow them to drive your car occasionally and not often.

Add Your Housemates to Your Car Insurance Policy

If your friend is likely to drive your car often and they live as a roommate under the same roof as you, you should ask your insurance company if they will add them to your policy.

This is common practice in the insurance industry, and your insurance company will expect you to do so. If you want further information about adding someone to your policy or getting the best quotes, read how to get car insurance.

Insurance For Friends Who Borrow Your Car

If your friend does not live under the same roof as you but is likely to drive your car often, you can ask your insurance company for further advice. The company will not automatically add someone who is not a family member and does not live under the same roof as you, but you should seek their advice.

Read more:

• Does my car insurance cover damage caused by a friend who borrowed my car and got into an accident?
• Does my car insurance cover damage caused by a family member who is not listed on a policy?

Usage Restrictions For a Friend Borrowing Your Car

You should refuse if your friend wants to borrow your car to pursue pain or commercial activities. So, if they want to moonlight as a driver for hire, they would need commercial car insurance coverage.

Your standard insurance does not include this, so it’s likely that the insurance company will not pay for any damage in this circumstance.

Case Studies: Car Insurance Coverage for Damage Caused by a Friend

Case Study 1: Coverage for Permissive Use

Sarah’s friend, Alex, borrowed her car and got into an accident. Luckily, Sarah had given Alex permission to use her vehicle, and her car insurance policy covered the damage caused by the accident. Sarah’s insurance company paid for the repairs, ensuring that she wasn’t left with a financial burden.

This case highlights the importance of permissive use coverage when allowing friends to borrow your car.

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

Case Study 2: Adding a Regular Borrower to the Policy

Jason frequently borrows his friend Lisa’s car for various errands. Recognizing the frequency of Jason’s borrowing, Lisa decided to add him to her car insurance policy. This way, Jason would be covered in case of an accident while driving her car. By taking this proactive step, Lisa ensured that Jason was protected under her policy and provided herself with peace of mind.

Case Study 3: Limited Coverage for Non-Household Friend

Emma occasionally lets her friend Mike borrow her car, even though they don’t live together. Although Emma’s car insurance policy does not automatically cover non-household friends, she reached out to her insurance company to discuss the situation.

The insurance company advised Emma on the best course of action and helped her understand the available options for providing coverage to Mike when he borrows her car.

The Bottom Line on Car Insurance Covering a Friend Driving Your Car

In many cases, your car insurance company will pay for any damage caused by your friend so long as you permit them to drive your vehicle. The company will typically extend the same level of protection as it does to you.

You should add them to your policy if they live in the same household. You should ask your insurance company for advice if they don’t live in the same house but may borrow the vehicle often.