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 of the damages.

But if someone who isn’t listed on your car insurance policy gets behind the wheel and ends up in an accident, you might find yourself in a complicated and costly situation. Car insurance typically follows the vehicle, not the driver, which means that your insurance could still cover the damages.

However, the specifics can vary widely depending on your policy, the state you live in, and who was driving your car at the time. In some cases, your insurance may only provide limited coverage, or you could even face increased premiums and liability issues. Understanding what happens when an uninsured driver crashes your car is crucial to avoiding unexpected expenses and protecting yourself legally and financially.

What happens if someone else crashes your car?

Generally, auto insurance follows the vehicle, not the driver. This means that if you’ve given permission to 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.

Does my insurance cover unlisted drivers in an accident?

If the person driving your car was not covered under your policy and had no insurance of their own, you might be on the hook for all the damages. This could include not only repairs to your vehicle but also medical expenses, property damage, and liability costs.

In some cases, such as when the driver was using your car without your permission, the insurance situation becomes even more complicated. Depending on the circumstances, your insurance company might refuse to cover the accident, leaving you to handle the financial fallout on your own. That’s why it’s crucial to understand the specifics of your auto insurance policy and to be cautious about who you allow to drive your car. Knowing the potential risks and how your coverage applies can help you avoid unpleasant surprises if someone else crashes your car.

Understanding permissive use and your car insurance

When you allow someone to drive your car, it is considered permissive use, and most insurers provide coverage for this under permissive use policies.

“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,” Walker says. 

However, there may be insurers who have different rules, so it’s crucial that you speak with your insurance company to know exactly what is and isn’t covered before you let someone drive your car. 

For example, if someone regularly drives your car or you are going on an extended road trip and sharing the driving duties with another driver, “you should consider adding them to your policy as a named driver,” Walker says. 

Non-permissive use is a different matter. Non-permissive use occurs when someone drives your car without your permission, such as a friend, family member, or even a thief. In these cases, the driver’s insurance may be responsible, but if they lack coverage, you may need to file a claim under your policy, provided you have collision coverage, to repair your vehicle.

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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 coverage will typically pay for repairs, but you’ll need to cover the deductible. Keep in mind, 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 damages 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.

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 on your policy drives your car and causes an accident. For example, if your friend drives your car and crashes, your policy would likely cover the damages, but the extent of coverage depends on your policy terms. If you don’t carry collision coverage, damages to your own car won’t be covered.

It’s crucial to contact your insurer to understand your policy’s terms, as some policies exclude coverage for certain drivers, like relatives not listed on the policy or “excluded drivers.” Rules and coverage options also vary by state.

In cases of non-permissive use—when someone drives your car without your permission—your friend’s insurance, if they have it, may be responsible for damages. If they’re 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 frequently drive a car you don’t own, consider non-owner car insurance to ensure proper coverage.

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

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

“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 you have accident forgiveness on your policy, you may get away without an increase if you meet the parameters of the program. Accident forgiveness can be given 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.

Other scenarios that impact your coverage

Now that we’ve gone over common scenarios involving friends, let’s look at a couple that involves other drivers:

• Your car is stolen and then crashed: If the thief crashes into someone or something, you won’t be held responsible for the damages done to other people and their property, but you probably will have to use your comprehensive insurance to pay for the damage to your car. 
• An excluded driver crashes your car: An excluded driver is a person – such as a teen in your home — specifically excluded on your insurance policy from driving your vehicles. Policyholders often exclude drivers to keep their premium down. Excluded drivers have zero coverage even if you give them permission to drive your vehicle. You will be on the hook for any damages.

The bottom line: Be careful about who you let 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 driver is unlicensed, it can keep your insurer from paying for accidents — and in some states, you may be cited by the police. 

In addition to any legal problems, there can be serious costs to dealing with an accident. 

Your auto policy follows your vehicle, so claims that arise from a friend wrecking your car will go on your policy and affect your future car insurance rates. Keep that in mind before handing over the keys to your car.

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

If you’ve been paying higher rates after an accident your friend caused, it may be wise to compare top-rated auto insurance companies to see which ones might give you a lower rate.

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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Chris Kissell is a Denver-based writer and editor with work featured on U.S. News & World Report, MSN Money, Fox Business, Forbes, Yahoo Finance, Money Talks News and more.