Am I Covered if Someone Else Drives My Car and Has an Accident?

Whether it’s a friend, a visiting family member, a babysitter, or even a long road trip, there are times when you need to allow someone else to drive your car. But what happens if they get into an accident while behind the wheel? Will your car insurance cover damages and injuries to the other vehicle and driver? What about your friend and your car?

While some situations are complicated and should be addressed directly with your car insurance company, in Florida, auto insurance coverage generally follows the car, not the driver. With some exceptions (see below), your insurance will likely pay for any claims resulting from an accident that takes place while someone else is driving.

Note: this blog post is intended for general knowledge only. Please consult with your auto insurance company before you lend your vehicle to someone else.

The exceptions

While in most cases, someone you lend your vehicle will be covered, there are a few exceptions:

The driver was specifically excluded on your insurance policy. Occasionally, in order to save money on car insurance premiums, clients will exclude a household driver who would make their car insurance premiums go up. In this case, there would likely be no coverage if that person was driving at the time of the accident.

The other driver in the accident was legally at fault. If this is the case, the other driver’s insurance should pay for damage to your vehicle. If your friend is injured, their own PIP should cover their injuries.

Your friend borrowed your car without your permission. In this case, your friend’s car insurance may be responsible.

Your car was stolen. You or your insurance will still have to pay for any damage to your vehicle, but you won’t be liable for damages or injuries caused by the thief.

Your car was being used for paid car-sharing services. Standard auto policies don’t include coverage for business use. You need specialized coverage for this activity.

Before you lend your car

Remember if your car insurance pays a claim for any reason, your future car insurance premiums could go up. And if an accident causes severe damage or injuries, you could wind up being sued. Before you lend your car, think about what the ramifications could be, both for your insurance and your relationship. Here are a few things you should do before you turn over your keys.

Review your car insurance policy and ask your insurance company if you’re not sure if you’ll be covered. If your friend or family member has car insurance, ask them to see what their car insurance policy would cover if they’re in an accident while driving your car.

Make sure the driver has a valid license and is a responsible driver (no DUIs or multiple accidents on their driving record). Be sure you and the other driver understand and agree on how any costs from an accident will be handled.

If someone will be driving your car on a regular basis, they should be listed as a driver on your car insurance policy, even if they don’t live with you. Reminder: if the person lives in your household and will be driving your car, they should be listed as a driver on your policy.

Car insurance options with Lakewood Financial Services

If you need car insurance, please call on the experts at Lakewood Financial Services. Since 2003, we’ve been serving the personal and commercial insurance needs of our clients in Bradenton, Lakewood Ranch, Sarasota, and surrounding communities. With more than 30 insurance companies to choose from, we can help you find the right coverage for your needs at a price you can afford. Contact us today for all of your personal and commercial insurance needs! Reach us by phone at (941) 747-4600, or contact us online.