Can I Drive Someone Else's Car With My Insurance?

How Insurance Works When You Drive Someone Else's Car

The fundamental principle: Insurance follows the car, not the driver.

When you borrow a car with permission:

1. Owner's insurance is primary

The vehicle owner's policy covers: • Liability for injuries and property damage you cause • Collision coverage for damage to the borrowed vehicle • Comprehensive coverage for theft, vandalism, weather damage

The owner's coverage limits and deductibles apply—not yours.

Example: You borrow your friend's car (insured with 100/300/100 liability). You cause an accident with $80,000 in damages. Your friend's insurance pays—even though you were driving.

2. Your insurance is secondary (excess coverage)

If damages exceed the owner's policy limits, your liability insurance may cover the difference.

Example: You borrow a car with 25/50/25 coverage. You cause an accident with $100,000 in injuries. The owner's insurance pays $50,000. Your insurance (if you carry higher limits like 100/300/100) covers the remaining $50,000.

3. Your liability always follows you

Even when driving someone else's car, you can use your own liability coverage if: • The owner's coverage is inadequate • You need additional protection • The owner's policy excludes you (rare with permissive use)

Key exception: If you drive the borrowed car regularly (daily commute, extended periods), you may not be covered under permissive use. The owner must add you as a listed driver.

For more on how liability coverage works, see our guide on liability car insurance explained.

What Is Permissive Use?

Permissive use means borrowing a vehicle with the owner's explicit or implied permission.

Most insurance policies include permissive use clauses that extend coverage to: • Friends borrowing your car occasionally • Family members driving your vehicle • Valet drivers parking your car • Mechanics test-driving your vehicle

Requirements for permissive use: 1. Owner's permission: Verbal or written consent required 2. Occasional use: Not regular or frequent 3. Licensed driver: Driver must have valid license 4. Lawful purpose: Not for illegal activities

Examples of permissive use: ✓ Friend borrows your car for a weekend trip ✓ Spouse drives your vehicle to work ✓ College student drives parent's car during breaks ✓ Sibling uses your car for errands

What is NOT permissive use: ✗ Someone steals your car ✗ Unlicensed driver operates your vehicle ✗ Regular daily use by non-listed driver ✗ Commercial use (Uber, delivery) without appropriate coverage

When permissive use fails:

If you drive someone else's car without permission or beyond permissive use terms: • Owner's insurance may deny the claim • You're personally liable for all damages • Your insurance likely won't cover you (driving someone else's car regularly requires being listed)

Policy language matters: Review the owner's policy for permissive use restrictions. Some insurers limit coverage for: • Drivers under 25 • Non-family members • Out-of-state drivers • Extended use beyond 30 days

What If I Don't Own a Car?

If you don't own a vehicle but drive regularly, consider non-owner car insurance.

Non-owner car insurance provides: • Liability coverage when driving borrowed or rental cars • Secondary coverage when primary insurance is insufficient • Protection against gaps in coverage • Continuous insurance history (prevents rate increases)

Who needs non-owner insurance: ✓ Frequently borrow friends' or family members' cars ✓ Use car-sharing services (Zipcar, Turo) ✓ Rent vehicles often ✓ Required to maintain SR-22 after license suspension ✓ Want to avoid coverage gaps between owned vehicles

What non-owner insurance covers: • Bodily injury liability • Property damage liability • Uninsured/underinsured motorist coverage (optional) • Medical payments (optional)

What non-owner insurance does NOT cover: ✗ Damage to the vehicle you're driving ✗ Your own injuries (unless you add medical payments) ✗ Vehicles you own or regularly use ✗ Vehicles owned by household members

Cost: $200–$500/year for basic coverage (far less than standard policy)

Learn more about insurance types in our guide on types of car insurance coverage.

What Happens in an Accident?

If you have an accident while driving someone else's car:

Step 1: Owner's insurance files the claim • Owner reports the accident to their insurer • Claim is processed under owner's policy • Owner's coverage limits and deductible apply

Step 2: Owner's insurance investigates • Insurer verifies permissive use • Confirms driver was licensed and authorized • Determines liability

Step 3: Owner's insurance pays (up to policy limits) • Liability: Covers injuries and property damage you caused • Collision: Covers damage to owner's vehicle (minus deductible) • Owner's rates may increase

Step 4: Your insurance covers excess (if needed) • If damages exceed owner's limits, your policy may cover the difference • You file a secondary claim with your insurer • Your rates may increase

Real-world example:

You borrow your sister's car (25/50/25 coverage) and cause a serious accident: • Injured driver: $150,000 in medical bills • Vehicle damage: $40,000 • Total: $190,000

How it's covered: 1. Sister's insurance pays: $50,000 BI + $25,000 PD = $75,000 2. Remaining damages: $115,000 3. Your insurance (if 100/300/100): Covers the $115,000 4. Both policies are exhausted 5. Both you and your sister may see rate increases

If you don't have adequate coverage, you're personally liable for the difference.

For more on coverage limits, read how much car insurance do I need.

When Your Insurance Won't Cover You

Your insurance may deny coverage when driving someone else's car if:

1. You drive the vehicle regularly • Using a borrowed car as your primary vehicle • Daily commuting in someone else's car • Extended use beyond 30 days

Solution: Owner must add you as a listed driver on their policy.

2. The vehicle is owned by a household member • You live with the owner • Vehicle is used by multiple household members

Solution: Must be listed on owner's policy.

3. You're excluded from the owner's policy • Owner specifically excluded you (usually for high-risk drivers) • Policy has driver restrictions

Solution: No coverage available—don't drive the vehicle.

4. You didn't have permission • Took vehicle without asking • Used vehicle beyond agreed terms

Solution: Always get explicit permission and clarify terms.

5. Commercial use • Driving for Uber, Lyft, delivery services • Business purposes

Solution: Need commercial or rideshare insurance.

6. Unlicensed or suspended license • Driving without valid license • License suspended or revoked

Solution: Don't drive—no coverage and criminal penalties.

For information on coverage exclusions, see our guide on what does car insurance cover.

Rental Cars vs. Borrowed Cars

Coverage differs for rental vs. borrowed cars:

Borrowed Cars (friends/family) • Owner's insurance is primary • Your insurance is secondary • Permissive use applies • No cost to borrow (insurance-wise)

Rental Cars • Your insurance typically extends to rentals • You can decline rental company insurance if your policy covers rentals • Credit cards may provide secondary coverage • Rental company insurance is expensive ($15–$30/day)

What to check before declining rental insurance: 1. Does your policy cover rental vehicles? (Most do) 2. Do you have adequate liability limits? 3. Do you have collision/comprehensive on your own vehicle? (Usually extends to rentals) 4. Does your credit card provide coverage?

When to buy rental insurance: ✓ You don't have collision/comprehensive on your own policy ✓ You don't want to file claims through your insurer ✓ Renting a luxury or exotic vehicle ✓ Traveling internationally (most U.S. policies don't cover Mexico, Europe, etc.)

Learn more in our article on types of car insurance coverage.

Tips for Borrowing Someone's Car Safely

Protect yourself when borrowing a vehicle:

1. Get explicit permission • Verbal or written consent from owner • Clarify terms: duration, mileage, usage

2. Verify insurance coverage • Ask owner about their coverage limits • Confirm permissive use is included • Check for driver restrictions

3. Carry adequate insurance yourself • Maintain at least 100/300/100 liability coverage • Your policy is secondary protection • Non-owner policy if you don't own a vehicle

4. Inspect the vehicle • Document existing damage (photos) • Check tire pressure, fluids, lights • Note fuel level

5. Drive carefully • Familiarize yourself with controls • Adjust mirrors and seat before driving • Avoid risky driving behaviors

6. Return as promised • Refuel to original level • Return on time • Report any issues immediately

7. Know what to do in an accident • Call police (if required) • Exchange information with other parties • Document scene (photos, witness info) • Notify owner immediately • Report to owner's insurance • Report to your insurance if needed

For more on accident procedures, see our guide on what does car insurance cover.

What About Letting Others Drive Your Car?

If you're the car owner letting someone borrow your vehicle:

Risks: • Your insurance pays first if they have an accident • Your rates may increase after a claim • You're liable if your coverage is inadequate • Repeated claims can lead to policy cancellation

Before lending your car:

• 1. Verify they're licensed
• Valid, unexpired license
• Clean driving record (ask about violations)

• 2. Check your policy
• Permissive use included?
• Driver restrictions or exclusions?
• Coverage limits adequate?

• 3. Set clear terms
• Duration of use
• Mileage limits
• Prohibited uses (no Uber, racing, etc.)

• 4. Consider saying no if:
• ✗ Borrower has poor driving record
• ✗ They'll use car regularly (must be listed)
• ✗ Commercial or business use intended
• ✗ Your coverage limits are low
• ✗ You're uncomfortable with the risk

Alternative: Add frequent borrowers as listed drivers on your policy. Costs more but ensures coverage.

For more on liability, read liability car insurance explained.

Frequently Asked Questions