In many states, if you're a direct family member of the car owner, you're supposed to have a permit, but it's still polite to ask. People who usually borrow their car may not be covered because their policy must include a regular driver of their car. It's best to add frequent borrowers to your policy, such as roommates, to ensure that your insurance will cover accidents. If you allow someone else to lend you your car, your insurance policy will continue to cover it.
Insurers call this permissive use. This is true even when the driver has their own insurance. However, both your insurance policy and your driver's insurance may apply in the event of an accident. The type of insurance you pay and the amount will vary depending on the language of both policies and the details of the accident.
Ultimately, it's generally safe to lend the car to your friend for errands or occasional projects. And the same thing happens with a car loan. Just make sure it's for “normal use”. You'll need to confirm that the car is covered and that your insurance will apply, whether you're the owner or the borrower.
It's important to remember that every car insurance policy is different and yours may have other guidelines for situations where a borrowed car has had an accident. Even if the person who borrows your car has the best coverage available, your insurance covers your vehicle. Therefore, even if you decide to lend a car to someone excluded from your coverage, your insurance policy won't cover it because it's specifically omitted from your policy coverage. If you lend your car to someone who can't legally drive, don't expect your car insurance to cover the damage caused by the resulting accident.
You don't need to add a neighbor who borrows your car with permission, unless you drive the car on a regular basis. So, under the law, are all the “borrowers” of the car insured under my policy? How does this work with a teenager? The car is not his. As we've seen, often someone else can drive your car if you give your permission and it's still covered by your car insurance. The borrower's insurance is considered secondary, meaning that, in the event of an accident, it could apply if the landlord's insurance is not sufficient to cover the damage in full.
When you allow a friend, family member, or babysitter to borrow your vehicle from you, they will also apply for an auto insurance loan. Another circumstance in which your insurance may not cover someone to whom you lend your car is if it is excluded from your policy. What happens if the owner of a borrowed car has had an accident but the owner refuses to file an insurance report? Will my secondary insurance take effect?.