Insurance Risks When Borrowing a Car: Know Before You Drive

TAMPA, Fla., Aug. 29, 2025 /PRNewswire/ -- Recently, USInsuranceAgents.com published an investigation into whether an uninsured driver can borrow a car, bringing up the age-old question: Does insurance follow the driver or the car?

The report revealed that in most cases, coverage follows the car, but coverage also follows the driver.

Insurance Following the Car

Typically, anyone permitted to drive a car is covered by the vehicle's insurance policy. So, if an uninsured driver borrows a car and is in an accident, the vehicle's insurance policy will kick in.

If that driver had had insurance, the vehicle's coverage would still be primary, but if the damages and injury financial impact exceeded the policy limits, the driver's policy would be secondary.

Insurance will also follow the driver when an insured driver rents a car. Their insurance policy will typically cover their rental car.

Insurance Risk When Borrowing a Car

When a friend has permission to occasionally borrow a car, the car's insurance will be the primary coverage. If that friend borrows the car frequently, the insurance company may require the driver to be listed on the policy.

If a friend borrows a car with minimum coverage and gets into a major accident, the insurance policy will likely have limits too low to cover the cost of the damage. The driver is responsible for the additional expenses out of pocket if they don't have their own insurance policy.

Insurance Risk When Lending a Car

If someone lends their car to an unlicensed driver, who causes a crash, the insurance company may deny the claim because the driver was operating the vehicle illegally.

Melanie Musson, a nationally recognized car insurance expert with USInsuranceAgents.com, urges readers to "make sure that anyone borrowing a vehicle has a valid driver's license."

Responsibility When Borrowing a Car

Car owners should discuss insurance coverage and the borrower's potential responsibility before allowing a friend to borrow their vehicle. These conversations may be uncomfortable, but they can eliminate confusion and set expectations.

An uninsured driver may want to consider purchasing a non-owner insurance policy to mitigate the financial risk associated with borrowing a car. Policies start at an affordable $32 per month.

Read USInsuranceAgents.com's entire report here: Does car insurance follow the car or the driver?

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SOURCE USInsuranceAgents.com