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Your friend's car is in the shop and they're starting a new job, so they ask if they can borrow your vehicle to get to work. You want to be a good friend, but before you hand over your keys, you wonder what would happen if your friend were in an accident while driving your car. Does full coverage cover any driver?
Typically, yes, your insurance policy would cover another driver who has permission to drive your car. However, there is one big caveat: Coverage won't apply to people who live with you if they're not listed on your policy.
Before you let another driver behind the wheel of your car, here's what you need to know about full coverage policies.
When you borrow a car, you also borrow the car insurance
When it comes to full coverage car insurance, there's a key phrase to remember: Insurance follows the car, not the driver. Full coverage policies include three car insurance types.
- Liability: Liability insurance pays for medical expenses, injuries, and property damage you cause to someone else in an accident.
- Collision: Collision coverage pays for damages that occur to your own vehicle in an accident.
- Comprehensive: Comprehensive insurance reimburses you for repairs to your vehicle resulting from incidents beyond accidents; for example, if your car's exterior is damaged by hail, comprehensive insurance would pay for the repairs.
Although there are some exceptions, most full coverage auto insurance policies cover "permissive use," meaning the policy covers drivers not listed on the policy as long as they're given permission to drive the vehicle.
How permissive use works
Permissive use gives other people the ability to drive your car and still be covered by your insurance policy. You can give permission verbally or in written form. Once you give permission, your coworker who borrows your car, a friend who takes your car to the store, or a cousin who drives your car while visiting your city are protected. This coverage can extend to collisions, property damage, non-collision accidents, medical bills, and more, depending on your policy.
As long as you have an active full coverage policy and the driver has a valid license, your insurance policy will cover them if they're in an accident or incident.
Who is not covered under permissive use?
Although permissive use extends your coverage to your friends or relatives who drive your car, there are limitations. The following scenarios would not fall under permissive use.
- The driver lives with you: If a friend or family member lives with you, they are excluded from permissive use. Instead, they have to be added as a listed driver to your policy.
- The vehicle was used without your permission: If someone takes your car without your permission — even if you allowed them to use it in the past — they would not be covered by your insurance. That's when things can get messy; if they have insurance, their policy may cover them. Otherwise, you may be on the hook for the cost of repairs or damages.
- The driver uses your car often: Although specifics vary by insurer, permissive use typically applies to drivers who use your car occasionally. If they use your car often — such as more than 12 times per year — they will need to be added as a listed driver to your policy.
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At-fault accident
If someone borrows your car and is found to be at fault in an accident, your insurance will usually help with the cost. As long as the driver had your permission, your policy would pay for damages to another vehicle, any medical expenses the other driver incurred, and damages to your own car.
However, it's important to know that the accident can still affect your finances. You'll have to pay your policy deductible for collision and comprehensive insurance. And the claim can affect your own insurance premiums, even if you weren't the one behind the wheel. After an accident, your rates may increase. Plus, if you previously qualified for accident-free or claims-free discounts, you could lose those savings since a claim was filed.
Not at-fault accident
If your friend is in an accident — but the collision wasn't their fault — the other driver's insurance should pick up the bill. However, if the other driver doesn't have insurance, or if their policy doesn't have a high enough coverage limit for the total cost of repairs, you could be in a pickle. As the vehicle owner and policyholder, you could end up legally responsible for the remaining medical bills, repairs, and damages.
That issue is why it's important to add uninsured/underinsured motorist protection to your policy. It helps cover damages to your car, medical bills, and lost wages if you're in an accident and the other driver doesn't have adequate insurance.
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Do I have to list all household drivers on my insurance?
Yes, any household members who will drive your car, even on an occasional basis, need to be listed on your policy. Insurers assume that any licensed driver in your household will have access to your car and will likely drive it at some point, so they require all your household members to be included on your policy.
Some insurers do allow you to exclude certain drivers who live in your household. For example, if a driver in your household were convicted of driving under the influence (DUI) and adding them to your policy would cause your premiums to skyrocket, some insurers permit you to exclude them from your policy.
Keep in mind that an excluded driver won't be covered if they do use your car and get into an accident, so you'll be responsible for the entire cost of any repairs or damages.
FAQs
What does full coverage not cover?
Full coverage policies include liability, collision, and comprehensive insurance, but they don't cover normal wear and tear, mechanical breakdowns, or damages that happen when a driver uses your car without your permission.
Can my son drive my car if he doesn't live with me?
If your child borrows your car occasionally — such as 12 times per year — your policy will usually cover them. However, if they use the car more often than that, they should be listed on your policy, even if they don't live with you.
If the child does live with you — or if they lived away and moved back home — you'll need to add them to your policy as a listed driver.
What happens if a driver is not listed on an insurance policy?
If a driver is in an accident and doesn't qualify under permissive use or isn't listed on your policy, the insurance company may deny any claims. And they could raise your premiums for violating your policy or even cancel your policy outright.
Can someone else insure my car?
Typically, you must be an owner or a co-owner of a car to insure the vehicle. However, other drivers can get coverage if they purchase non-owner policies, a type of insurance that provides liability coverage for bodily injuries and property damage.
Bottom line
Does full coverage insurance cover other drivers? A full coverage policy generally applies to anyone who infrequently borrows your car with your permission. But there are exceptions, such as people who live in your home who aren't covered under permissive use and must be listed on your policy to be protected.
It's a good idea to check with your insurer to make sure any friends or family members are covered before handing over your keys. That way, you can ensure you have the right coverage before a fender bender occurs.
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