What happens if someone who isn’t on your insurance crashes your car?

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If you drive your car and cause an accident, your car insurance will pay for at least some damages. Generally, auto insurance follows the vehicle, not the driver. This also means that if you’ve permitted another person to drive your car, your insurance policy will likely cover the damages in the event of an accident.

“If you give another driver permission to use your car on a temporary basis, your own auto insurance policy will likely be responsible for damage to the vehicle or medical bills,” says Carole Walker, executive director of the Rocky Mountain Insurance Association.

However, this coverage applies only up to your policy’s limits. If the costs of the accident exceed those limits, the driver’s insurance may come into play as secondary coverage, but this isn’t always guaranteed.

“Keep in mind, it will be your insurance — and by association, you personally — that will be responsible for covered damage and potential legal liability,” Walker says.

It’s important to note that your insurance rates could increase following an accident, even if you weren’t the one driving. The claim would be filed under your policy, and any resulting premium hike would be your responsibility.

What happens if an unlisted driver crashes your car?

If someone who isn’t listed on your policy crashes your car, whether your insurance covers the accident depends on a few key factors.

• Occasional or permissive use: Most car insurance policies include permissive use coverage, which means your carrier will cover the accident if you permitted the person to drive your car and they don’t live with you or drive your car regularly.
• Excluded or unlisted household members: If the driver lives with you and isn’t listed on your policy — or if they’ve been excluded from coverage — your insurance likely won’t cover the damage. Insurers expect all household drivers to be disclosed, and hiding a driver can result in denied claims or policy cancellation.
• The driver’s insurance: If your carrier denies the claim, the driver’s auto insurance (if they have any) may be used as secondary coverage.

Your policy may still provide coverage if the unlisted driver was a one-time, permitted user. But regular drivers or excluded individuals won’t be covered, and the financial consequences could fall on you. And regardless of who was driving, if they caused damage or injuries, you may be held financially responsible — especially if your insurer denies the claim. 

Always check with your insurer about who should be listed on your policy.

Does car insurance cover unlisted drivers in an accident?

In most cases, yes. If the person has your permission to drive and doesn’t live with you or use your car regularly, your insurance will likely extend coverage under what’s known as permissive use.

“Policy provisions often specify how often the vehicle can be driven — typically up to 12 trips — and have exclusions for household occupants or immediate family members,” says Walker. That means if someone drives your car occasionally with your consent, they’re probably covered, but it’s not guaranteed.

If the driver is a household member or someone who frequently uses your vehicle, they should be listed on your policy. If they’re not, your insurer may deny a claim or even consider it a form of misrepresentation.

Before handing over your keys — especially for something like a shared road trip or routine borrowing — check with your insurer to make sure that person is covered. You may need to add them as a named driver to avoid any gaps in coverage.

What happens if someone crashes your car and causes damage?

If a friend crashes your car and causes minimal damage to only your vehicle, your collision insurance will typically pay for repairs (if you have it), but you’ll need to cover the deductible. Remember that this claim could increase your insurance rates, even if your friend has their own insurance.

If the accident involves significant damage to others, your liability coverage will handle the costs of property damage and bodily injuries. However, if costs exceed your policy limits, you may be personally liable, and your friend’s auto insurance might act as secondary coverage. Carrying higher liability limits can help protect your assets in such situations.

The graph below shows who pays for damages based on multiple scenarios.

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When does car insurance cover damages if someone else drives your car?

Because car insurance typically follows the car, not the driver, your policy generally covers damages if someone not listed drives your car and causes an accident. For example, if your friend drives your car and crashes, your policy would likely cover the damage, but the extent of coverage depends on your policy terms. If you don’t carry collision coverage, for example, damage to your car won’t be covered.

Understanding your policy is crucial, as some carriers won’t cover specific drivers, like relatives not listed on the policy or named excluded drivers. Rules and coverage options also vary by state.

In cases of non-permissive use (e.g., when someone drives your car without your permission) your friend’s insurance, if they have it, may be responsible for damages. If uninsured, they could be personally liable, or you might need to file a claim under your policy if you have collision coverage. Similarly, if damages exceed your policy limits, your friend’s insurance might cover the remainder.

If you often drive a car you don’t own, consider getting non-owner car insurance to ensure coverage.

Do insurance rates go up if someone else crashes my car?

Usually, yes. Your insurance company doesn’t care if you are driving or a friend is.

“If you lend out your vehicle, there is a potential that an at-fault crash, moving violation or any insurance claim could impact your insurance premium or even renewal,” Walker says. 

If your policy includes accident forgiveness and you meet the requirements, your rate may not increase after a qualifying accident. Accident forgiveness can be extended as a perk to long-time customers with a clean driving record or as an add-on that you pay for once you are eligible.

Note: USAA is only available to military families.

What to know before letting someone else drive your car

“While it may seem like no big deal to lend out your car, you are ultimately responsible for the insurance coverage if they cause a crash,” Walker says. 

If the person driving is unlicensed, your insurance may deny the claim altogether, and in some states, you could face legal consequences.

Even if the driver is licensed and has your permission, your insurance follows your car, not the driver. So if there’s an accident, the claim goes on your policy, not theirs. That can lead to higher premiums, something to consider before you hand over the keys.

“Bottom line,” Walker adds, “be careful about who you lend your car to with the understanding you are also lending your insurance coverage.”

What our expert says

Q: Who pays if someone else drives and damages your car?

Carole WalkerExecutive director of the Rocky Mountain Insurance Information Association.

“If you give another driver permission to use your car on a temporary basis, your own auto insurance policy will likely be responsible for damage to the vehicle or medical bills.”

Chris Kissell

Contributing Researcher

 

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Specializing in insurance and personal finance, Chris Kissell is a writer and editor whose work has been featured at Forbes, U.S. News & World Report, MSN Money, Fox Business, Yahoo Finance, Bankrate and Money Talks News. He is based in Denver.