What Happens if Someone Else Crashes Your Car?

What Happens if Someone Else Crashes Your Car?

If the person driving your car at the time of the crash is listed on your auto insurance policy, your insurance covers them. If they're not named on your policy, what happens next depends—in part—on whether they had your permission to drive your vehicle.

Permissive Use

Most auto insurance policies issued by reputable providers cover drivers who have permission to use your vehicle, even if they're not named on your policy. This is known as permissive use.

Example: If you let your friend borrow your car, and they cause an accident, your insurance company, not theirs, will usually cover the damage. But coverage may be limited in some states if the person driving isn't named on your policy.

Permissive use applies only when someone who doesn't normally get behind the wheel of your car is driving. Insurance providers expect you to list all regular drivers on the policy so that they can accurately assess risk and determine your premium. If you don't, your insurer may not cover damages.

Non-Permissive Use

If someone borrows your car without your permission, their insurance company is typically responsible for covering the accident. If they don't have insurance, you may need to file a claim with your provider.

You may also need to prove to your insurance company that the person didn't have permission to drive your car.

Learn more: What Happens if You Drive Without Car Insurance?

Am I Liable if Someone Else Crashes My Car?

If someone driving your car with your permission is at fault in an accident, your insurance company is usually responsible for covering damages. But there are exceptions.

Depending on the laws in your state, if someone else crashes your car, you (not your insurance company) could be liable if:

• You knowingly allow an irresponsible, incapable or impaired driver to get behind the wheel.
• The driver regularly borrows your car, and you don't list them on your policy.
• The person driving is listed as an excluded driver on your policy.
• The damages exceed your policy's limits.

Does Insurance Follow the Car or the Driver?

In general, auto insurance follows the car, not the driver. That's why policies typically cover drivers who have permission to use your vehicle. However, your coverage won't always apply.

Whether it covers a driver not listed on your policy depends on multiple factors, including who caused the accident, the laws in your state and your insurance company's rules.

Who Pays if the Driver of Your Vehicle Is at Fault?

When you allow someone to drive your vehicle and they cause an accident, your insurance typically kicks in first. If you live in an at-fault state, your liability coverage pays for medical bills and property damage the driver causes to other people—up to your policy's limits.

If your policy's limits aren't high enough to cover the bill, the driver's policy may provide secondary coverage, depending on the circumstances of the accident.

Example: Say your sister is visiting for the weekend. You lend her your car, and she crashes into another vehicle, causing $25,000 of damage to the other car. Your property damage liability limit is $20,000. Your insurance company pays the first $20,000 in damage, and your sister's policy covers the remaining $5,000.

But what about your vehicle?

Your liability coverage won't pay for damage to your car. However, if you have collision coverage, you can file a claim with your insurance company to cover the repairs to your vehicle, minus your deductible. If you don't have collision coverage, you'll have to cover the repair costs out of pocket.

Since the accident involved your car, you may also get stuck with higher insurance premiums at renewal. Car insurance rates may increase by up to 30% after a minor accident and more than 50% after a serious incident.

Tip: If you live in a no-fault state, drivers must file accident-related injury claims with their own insurance companies no matter who is at fault. If the person driving your car was at fault, your policy would still pay for the property damage the driver caused to other people.

Learn more: How Much Will My Insurance Go up After an Accident?

Who Pays if the Driver of Your Vehicle Is Not at Fault?

If someone other than the person driving your car causes the accident, then the at-fault driver's insurance should cover the damages.

In the event that the at-fault driver doesn't have insurance or the cost of the accident exceeds their policy limits, you may be able to file a claim under your uninsured/underinsured motorist coverage—if your policy includes it. If not, you may have to pay for the damages out of pocket.

When Should You Add Someone to Your Car Insurance?

You should add anyone who drives your car regularly to your car insurance policy. That includes all licensed drivers who live in your home unless you specifically list them as an excluded driver. This includes people who frequently drive your car, such as a nanny or adult children, even if they don't live with you.

Insurance companies calculate premiums based on risk, and they use the driving profiles of regular drivers to help assess that risk. If you're not upfront about who's driving your car on a routine basis, the insurer won't cover them after a crash—even if they have permission to use your vehicle.

Tip: If you explicitly exclude a driver from your policy, the insurance company won't cover them if they drive your vehicle, whether they have permission or not.

How to Add Someone to Your Car Insurance

The steps below outline the general process you need to follow to add someone to your car insurance policy. But keep in mind that each insurer has its own requirements.

1. Contact your insurance company. Insurers typically allow you to make changes to your policy by phone, online or through the company's app.
2. Provide driver information. You generally need to provide the driver's name, date of birth and driver's license number. If they have their own car, you'll also need its vehicle identification number (VIN).
3. Make a payment. Adding someone to your car insurance increases the insurer's risk because the company is providing coverage to more people. Be prepared to pay an added charge when you add a new driver to your policy, or for your premiums to increase.

Frequently Asked Questions

The Bottom Line

Insurance companies have different rules, and states have different laws about what is and isn't covered when someone else is driving your car. It's best to check your insurance coverage before allowing someone to borrow your car to find out how your insurer handles claims when someone else is driving.

Even if your insurance company covers the damage, you should think twice about who you let behind the wheel. If someone else drives your car and gets in an accident, it could result in higher premiums you're responsible for paying.

While managing the insured drivers on your policy, it may be wise to compare car insurance quotes from multiple insurers to make sure you're still getting the best rate. Be sure to compare the same policy limits and coverage when looking at the price to make an accurate comparison.