Is the Car Insured or the Driver?

My girlfriend borrowed my car while I was out of town and got in an accident. Will my insurance cover the damage since she was driving?

Someone else is driving your car and has an accident. Who is responsible? Does the driver’s insurance pay for the damages or does your insurance foot the bill? The issue of insurance coverage when driving another person’s car is a common one, but the answer is fairly simple: car insurance follows the vehicle. Said another way, car insurance follows the vehicle first and then the driver. As long as the driver had permission to drive the vehicle, the policy covering the car should pay for any property damage and/or injuries. Read on for a more detailed explanation of when coverage applies.

Permission Is Key

Your insurance policy will cover any non-excluded driver as long as you give him/her permission to drive your vehicle. Exclusions apply to people whom your policy specifically will not cover if they drive your vehicle. For instance, some policies automatically exclude any drivers between the ages of 14-24 unless they are expressly listed as drivers of the vehicle on the policy. Usually, most policies cover members of your household when they drive your vehicle, regardless of whether they had your permission. To be valid, permission must be granted by the owner of the vehicle. For example, your teenage daughter could not give her boyfriend permission to drive your Porsche and have your coverage apply.

Owner’s Policy Primarily Responsible

If a guest driver has an accident in your vehicle, your insurance policy would provide primary coverage as long as the driver had your permission. This is where our aforementioned rule of thumb kicks in: insurance follows the vehicle, then the driver. Your policy is the primary insurance, meaning it would pay for the damages to your car while the guest driver was operating the vehicle. The driver’s insurance would serve as secondary coverage, meaning he might have some responsibility for liability, medical expenses, etc. The driver’s insurance may also come into play if the vehicle’s owner did not have insurance or had inadequate coverage to pay for the damages.

If You Drive Someone Else’s Car…

Before you jump behind the wheel of someone else’s vehicle, make sure you take the following things:

1. Verify that you have permission from the vehicle’s owner.
2. Verify that the vehicle’s owner carries adequate collision and comprehensive coverage.
3. Talk to your insurance agent to see if your policy will pay for damage that the owner’s policy does not cover.
4. Check your state’s laws concerning guest drivers. Every state has different laws governing who is responsible for insurance coverage when a non-owner is driving the vehicle.