What Happens if You Let Your Friend Drive Your Car and an Accident Happens?

California law states the car’s insurance follows the car and not the driver. This means that if you lend your car to a friend and is involved in an accident, your auto insurance is primary and will pay for any property damage, regardless if your friend is fully covered by his or her own auto insurance. Primary coverage applies so long as the person driving is not specifically excluded on your policy. If you have liability and collision coverage, then it is your own policy that will be used. Should your coverage not be adequate to cover the damages, then your friend’s policy is used as secondary coverage once your own limits are exhausted. This includes personal injury and medical expenses as well as property damage.

What if Your Friend Caused the Accident?

If your friend is liable for an accident, you must file a claim with your own insurer. You are primarily responsible for paying the deductible for any property damage though you can certainly ask that your friend pay it since he or she caused the accident. Further, your own insurance premiums will likely increase even if it wasn’t you that was driving.

What If Someone Else Was Responsible for the Accident?

Should someone else’s negligence have caused the accident, you merely file a claim with the responsible party’s insurance carrier to pay the property damage. Your friend may file a claim for personal injury under your policy as well.

Permissive vs. Non-Permissive Use

You can give permission to anyone to drive your car so long as that person is licensed. Your insurance policy will cover any permitted driver in most cases. If, however, your friend or relative drives your car without your express or implied permission, then that person’s own insurance will apply and your carrier will become secondary. It may be difficult to demonstrate that that person did not at least have your implied permission to drive unless you can produce testimony from a witness that you expressly denied that person use of your car.If your car was stolen, you are not liable for any damage or injuries to others.