Can you lend your car to an uninsured driver?
Lending your car to an uninsured driver: Understanding the risks, legal implications, and precautions to take. Discover the potential consequences of allowing an uninsured driver behind the wheel of your vehicle and the steps you can take to protect yourself. Learn about liability issues, insurance coverage considerations, and essential precautions to mitigate the risks.
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Laura Walker
Former Licensed Agent
Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance for 10 years. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate...
Former Licensed Agent
UPDATED: May 27, 2023
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: May 27, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
In the article “Can you lend your car to an uninsured driver?” we explore the important considerations and potential risks associated with allowing someone without insurance to drive your vehicle.
Understanding the legal implications, liability concerns, and potential financial consequences is crucial when making such a decision. We delve into the key topics of liability, insurance coverage, and precautions to protect yourself and your vehicle.
To ensure comprehensive coverage and find the best insurance providers tailored to your needs, enter your zip code and compare rates today. Safeguard your car and your peace of mind with the right insurance coverage.
Can someone else drive your car?
Yes, other people can drive your vehicle. But you need to be careful when lending out your car to uninsured drivers because of the potential liability to you as the car owner.
So, before you let someone else get behind the wheel of your car, you should do two things to make sure that person is covered by your policy.
First, make sure the driver has a valid driver’s license. What if someone borrows you’re car on an expired license?
Second, check that the driver has their own insurance. If they don’t, you have to notify your insurance company. The person who wants to drive your car needs to be licensed and will need to be listed on your car insurance policy in order to be covered.
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Does insurance follow the car or the driver?
Auto insurance generally follows the car, not the driver. That means, depending on who’s driving and the type of policy you have, someone else can drive your car and be covered by your insurance. If I loan my car to somebody, are they covered by my auto insurance policy? Typically the answer is yes if the driver has a valid license.
Who’s driving?
Your car insurance will cover your automobile if it’s being driven by family and other household members. Most policies require that licensed drivers who live with you or who have regular and periodic access to your vehicle be named on the car insurance policy.
Occasional and one-time drivers, however, typically don’t have to be listed on the policy in order to be covered, but the extent of the coverage depends on the type of policy you have. Read what you should know about one-day car insurance if you’re a one-time driver.
What type of insurance coverage do you have?
The type of vehicle insurance you have has a lot to do with the level of coverage.
Standard general liability auto insurance covers the accident victim’s personal injuries and property damage, but will not pay for injuries of the person who operated your car or repairs to your car.
Collision and comprehensive car insurance are two separate add-on policies that pay for the injuries of the person who drove your car, as well as for damage to your vehicle. Find out what is included in comprehensive car insurance before purchasing.
Medical payments insurance is another option for covering uninsured drivers. If you want to make sure that authorized drivers have medical coverage if they get injured in an accident they caused, this coverage may help pay for their medical bills.
There is also a kind of policy called non-owner car insurance for people who drive someone else’s car. Non-owner car insurance policies tend to be cheaper than regular insurance because non-car owners typically drive less than car owners.
Can you be liable for loaning your car to someone?
If an uninsured driver has an accident while driving your car, you could be liable for damages that aren’t covered by your insurance. If the driver who borrowed your car is legally licensed, your insurance company may provide coverage for things like bodily injury.
However, if you loaned your car to an unlicensed driver, you may end up paying out of pocket for damage to the other driver’s car because your insurance company is not obligated to cover drivers not listed on your policy. That’s why it’s so important to notify your car insurance company if someone other than the people listed on your policy will be driving your car.
You should also consider underinsured/uninsured coverage. This type of coverage is an add-on policy, which costs extra but may be worth it because it covers personal injury and property damages caused by an uninsured driver.
What happens if you let someone drive your car without telling your insurance company?
It is likely a serious breach of your auto insurance policy if you fail to tell them that another person will be driving your car. Your carrier has the right to deny a claim, or worse, cancel your policy.
The last thing you want to happen is to have your policy canceled. The first consequence is you won’t be able to drive because it is illegal to drive uninsured.
It is harder to find insurance after you’ve been canceled by your former provider. You can also expect your rates to increase, and you may have to pay a deposit along with a reinstatement fee to get new coverage.
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Final Thoughts on Lending Your Car to an Uninsured Driver
When you lend your car, you need to think about insurance. If the person borrowing your car doesn’t have auto insurance, it’s important to notify your carrier that someone new will be driving your car.
It only takes a simple phone call or email to protect yourself from liability if the person driving your car causes an accident, to prevent your policy from being canceled, and to keep your insurance rates from going up. It’s so easy to pick up the phone to add a new driver to your policy, and save yourself from the consequences.
Frequently Asked Questions
Can I lend my car to someone who doesn’t have insurance?
It is not recommended to lend your car to an uninsured driver as the financial and legal risks can be significant.
What are the risks of lending my car to an uninsured driver?
If an uninsured driver gets into an accident while driving your car, you could be held liable for any damages or injuries they cause. You may also be personally responsible for any medical bills, property damage, or legal fees resulting from the accident.
What if the uninsured driver is a family member or friend?
Even if the uninsured driver is a family member or friend, you should still be cautious about lending them your car. It is important to remember that accidents can happen to anyone, and the financial and legal risks of an accident involving an uninsured driver can be significant.
What if the uninsured driver is at fault in an accident?
If an uninsured driver gets into an accident while driving your car and is found to be at fault, you may be responsible for any damages or injuries they cause. This could include paying for repairs to other vehicles or property, medical bills, and legal fees.
Can I add the uninsured driver to my insurance policy?
In most cases, you cannot add an uninsured driver to your insurance policy. Insurance companies typically require drivers to have their own insurance coverage, and allowing an uninsured driver to use your car could be considered a breach of your policy.
What should I do if someone without insurance needs to borrow my car?
If someone without insurance needs to borrow your car, it is best to decline their request. If you do decide to lend them your car, make sure you have a written agreement in place that outlines the terms and conditions of the loan. You should also consider requiring the borrower to purchase temporary insurance coverage for the duration of the loan.
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Laura Walker
Former Licensed Agent
Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance for 10 years. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate...
Former Licensed Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.