If you need to borrow someone else’s car, you might be wondering if your car insurance will cover you. We’ll go over the basics of car insurance policies, who they cover and how insurance works when you drive another car.
Basics of car insurance
Your car insurance policy is a contract between you and your insurance company. It provides financial protection in the event of certain unforeseen situations involving you or your vehicle. The exact terms vary by state, company and the specific policy.
A typical car insurance policy covers medical expenses and liability protection for you. Each state has their own minimum insurance coverage requirements, and may contain the following coverages:
Medical benefits coverage can help pay medical expenses for you or your passengers after an accident. In some states this is provided under mandatory personal injury protection (PIP) coverage but additional optional coverage may be available.
Bodily injury liability coverage protects you if you’re held responsible for injuring someone else in a car accident.
Property damage liability coverage covers damage you cause to the property of others (such as a car, fence, or a building) in a car accident.
Uninsured and underinsured motorist liability coverage helps pay medical costs and other related expenses when you or one of your passengers is injured in an accident caused by a driver who doesn’t have enough car insurance (is underinsured) or who doesn’t have any coverage (is uninsured). This coverage may also pay for injuries sustained in a hit-and-run accident.
“Full coverage” includes comprehensive and collision coverage, which help pay for damage to your own vehicles, subject to a deductible.
Collision coverage helps pay for the cost to repair or replace your car if it hits another car or an object, is hit by another car, or if it rolls over while driving.
Comprehensive coverage protects your car from damage NOT related to a collision with another vehicle. This includes things like fire, theft, vandalism or fallen trees.
Permission and consent
Most policies will cover the named insured and their immediate family members who live in the same household, as well as anyone the policyholder allows to drive their car. Check the policy documents to confirm. If the named insured’s policy does not allow permissive use, their insurance company may deny your claim if you are driving their vehicle and crash.
It’s important to note that anyone who regularly drives another person’s car should be listed as an occasional operator on that person’s car insurance policy, but that generally is not required for one-time use.
Insurance coverage for borrowing a friend’s car
When you borrow a friend’s car, their insurance will typically cover you as long as you’re driving the car with their permission. However, this may vary between insurance policies, and if you borrow your friend’s car regularly, you should be listed on their policy. It’s best to confirm with your friend and their insurance company for specifics.
Rental cars
Your own car insurance will typically cover you when you rent a non-commercial vehicle from a rental company for short-term use. Most rental car insurance offered by the rental car company is redundant with coverage you may already have.
In general, if you already carry full coverage on your personal car insurance policy, you don’t need to purchase additional rental car insurance. Your medical benefits and liability coverage will also still apply. Check with your insurance provider for the specifics of your policy.
Steps to take before driving another car
Before borrowing a friend’s car, make sure you have their express permission and consent. Confirm that the car is insured and will cover you when you’re driving it.
What happens in the event of an accident?
If you get into an accident while driving someone else’s car, there could be multiple insurance policies in play. In most cases, the vehicle owner’s policy is the primary insurance policy for damage and liability coverage. Your own medical benefits coverage should pay for your medical expenses if you sustain injuries in a crash.
In the case of a rental, your insurance is the primary coverage.
Conclusion: Does car insurance cover me in another car?
In many cases, the car owner’s insurance will cover you when you drive their car with permission. An exception to this is if you’re injured driving another car; your own medical benefits coverage should apply. If you are in an accident driving a rental car, your own insurance coverage should cover you. Of course, there can be differences in the policies offered by different companies. The car’s owner may not have bought all optional coverages, so you should review your own policy and ask your friend about the coverage they carry before you use their car. Ask an insurance expert if you are unsure.
