What if an uninsured friend wrecks my car? (Three Types of Borrowers)

When a friend drives your car and gets into an accident, what about the repair costs? You might know that they don’t have a vehicle of their own and do not have insurance in their name. Will that affect your insurance, and can you still file a claim for the damage? 

Does insurance cover it if my uninsured friend wrecks my car?

Usually, insurance does still cover uninsured drivers, but it depends on a few key things. If the driver is unlicensed, then it will not. If the driver is below a certain age, then a clause within your policy may not allow them to drive your vehicle. 

If they live in the same household as you, you should always list them as a named driver on your policy. However, if they are just an occasional user and have borrowed your car with your permission, everything should be okay. 

Read more: How do you report a driver with no insurance?

Three Types of Borrowers

Below we go into detail on three different types of scenarios in which drivers may borrow your vehicle. 

Does my insurance cover other drivers who I know?

In most cases, your insurance will cover drivers who use your car occasionally. This is known as a permissive user, although it does not apply to people who live in the same household. 

So, if the friend was driving your car with your full knowledge, then the same levels of coverage that you currently have will apply in this situation. Here, the insurance will “follow the car,” and it doesn’t matter that your friend did not have insurance in their own name.

Remember, you should list all drivers who live in your household on your policy. The insurance company assumes they have access to the vehicle and may drive it from time to time. The insurance company will address this on the claim if they are on the policy.

What if an uninsured driver borrowed my car without my knowledge?

This will be illegal, and if you had not given permission to that person to drive your vehicle, the insurance company might not entertain a claim. If somebody steals your car, then this is a police matter. You will need to inform the authorities immediately and file a police report. 

You will also need to notify your insurance company right away. But, if there is no legal record of somebody stealing your car and it’s in an accident during that time, you may be liable for damages even though they did not have your permission to drive your vehicle.

Can uninsured drivers drive someone else’s car?

You can have a driver’s license without needing insurance, and in most states, you cannot register a car unless you have proof of insurance first. Still, an uninsured driver with a valid license can drive someone else’s car if they have the owner’s permission and are subject to any age clauses in the policy.

Does uninsured motorist coverage help when someone else wrecks my car?

Uninsured motorist coverage does not apply in this situation. This type of coverage will cover your losses when another driver who does not have insurance causes an accident involving your vehicle.

Someone else wrecked my car, so what should I do next?

Make sure you have all the accident scene details and a police report. Notify your insurance company immediately.

What happens if I loan my car out and they crash it?

Many people ask, “Can you let other people drive your car?” In many cases, you can so long as you give them permission but check your policy first to see if there is an age exclusion. The driver must be on your policy if they live in your household, and if somebody steals your car, you must file a police report immediately.

Case Studies: What if an uninsured friend wrecks my car?

Case Study 1: Permissive User With Permission

Sarah lends her car to her uninsured friend, Mike, who is a licensed driver. While driving, Mike gets into an accident. Since Sarah gave him permission to use the car and he is eligible and licensed, Sarah’s insurance should cover the accident. She can file a claim for the damage caused by the accident, and her insurance policy will “follow the car” in this situation.

Case Study 2: Unpermitted Borrowing

John discovers that his car has been taken by his uninsured friend, Lisa, without his knowledge or permission. Lisa gets into an accident while driving John’s car. In this case, since Lisa did not have permission to drive the vehicle, John’s insurance company may not entertain a claim.

John should immediately inform the authorities, file a police report, and contact his insurance company to report the unauthorized use of his car.

Case Study 3: Household Member as a Borrower

Emily’s uninsured sibling, Alex, lives in the same household and occasionally borrows her car with her knowledge and permission. If Alex gets into an accident, Emily’s insurance coverage will likely apply, as long as she lists all household members who have access to the vehicle on her policy. Insurance companies assume that household members may occasionally drive the insured vehicle.