Lending a car to a friend or family is not a new thing. It’s a convenient way to get someone you know from point A to point B without having to drive them yourself or paying for a ride-sharing service. However, what happens when an accident occurs while the car is being driven by someone other than the policyholder? Well, there are many car insurance myths surrounding this topic that you must debunk.

Generally speaking, most auto insurance policies cover accidents when someone else is driving the car with your permission. However, there are some instances where this may not be the case. For example, if the other driver is not listed on your insurance policy, or if they are driving your car for commercial purposes, your insurance company may deny coverage.

Why you need your auto insurance

When loaning your car to another driver, you’ll want to ensure that they have their own auto insurance policy. Even so, there are still many ways your policy can help in the event of an accident.  

According to The Balance, if the other driver is at fault, your insurance will likely cover any damage to your car and medical expenses. If the other driver doesn’t have insurance, or if their insurance doesn’t cover the full extent of the damages, your policy may step in to help cover the remaining costs.

How your personal insurance covers the repairs associated with the accident

If you have auto insurance, it will likely cover the cost of repairs to your vehicle. However, if the other driver is at fault, their insurance should cover the cost of repairs as well. It’s important to know how insurance companies calculate auto insurance so you know how much they cover.

When the driver’s car insurance applies

car accidents, insurance, maintenance

A damaged car after an accident | Sina Schuldt/picture alliance via Getty Images

Some states require that the driver’s specific portion of the policy covers damages beyond your own coverage. For instance, if the damages go beyond your policy limit, the borrower will cover the remaining damages. This also applies to the damages that your insurance doesn’t cover. In this case, the borrower’s insurance should also step in to help pay for those damages.

You’ll treat your own policy as the primary cover and the borrowers like a backup plan. So, their insurance will always step up to pay for damages beyond your policy.

Consider the pros and cons of lending out your car

Lending your car can be a great way to help out a friend or family member in need. If the driver is covered under the terms of your policy, then the good news is that you shouldn’t have to worry about a thing. Your insurance company will pay for the damages to your car and the injuries incurred.

However, there are some potential risks that you should be aware of before you lend your car. For example, if the driver is not listed on your policy and gets into an accident, you could be held liable for any damages. 

Additionally, if the driver is not experienced or does not have a good driving record, they could end up getting into an accident that could cause serious damage to your car.

If you decide to lend your car to someone, make sure you are clear about the rules and regulations beforehand. This way, both you and the driver will be on the same page, and there will be no surprises later on.


The Citroën Oli Is A Pickup Truck Made Of Cardboard

After revealing a refreshed logo a few days back , French carmaker Citroën has revealed a concept car that’s meant to provide an “unconventional” look at family mobility with the Oli. Stylized as the “oli,” it’s a pickup truck that goes against the trend of big screens and gadgets. ...

View more: The Citroën Oli Is A Pickup Truck Made Of Cardboard

Zilisch’s Victory Narrows Mazda MX-5 Title Chase

BRASELTON, Ga. — The Idemitsu Mazda MX-5 Cup presented by BFGoodrich Tires title chase narrowed to 30 points on Thursday courtesy of Connor Zilisch’s victory in the No. 72 Hixon Motor Sports entry. Zilisch beat teammate Selin Rollan to the checkered flag by 0.123-second. Championship leader Jared Thomas finished ...

View more: Zilisch’s Victory Narrows Mazda MX-5 Title Chase

Ricciardo ‘at peace’ with Formula 1 future

Daniel Ricciardo Daniel Ricciardo is at peace with whatever his Formula 1 future may be. The Australian is likely to be absent from the grid next season after agreeing to the early termination of his contract with McLaren. With limited opportunities available, and other drivers seemingly ahead of him ...

View more: Ricciardo ‘at peace’ with Formula 1 future

Tander talks Edwards engineer adjustment

The #97 ZB Commodore Garth Tander has explained the intricacies of working with a new engineer as he prepares for next weekend’s Repco Bathurst 1000. Tander will partner Shane van Gisbergen at Red Bull Ampol Racing, marking the pairing’s fourth Great Race together. Van Gisbergen welcomed a new race ...

View more: Tander talks Edwards engineer adjustment

Here’s how Americans feel about home backup power – and rising outages

As Hurricane Ian slammed into Florida, Goal Zero, a Bluffdale, Utah-based portable clean energy company, released survey results that found 84% of Americans worry about power outages and 26% feel vulnerable to power outages. So here’s how Americans feel about mitigating blackouts with backup power. The online survey that ...

View more: Here’s how Americans feel about home backup power – and rising outages

A brand new all-electric boat racing series begins in 2023

Powerboat racing events have traditionally focused on high-speed, gas-guzzling watercraft, but a gradual shift into electrified racing boats is taking place thanks in part to the introduction of the RaceBird, a fully electric powerboat designed to compete in the all-electric E1 Series starting in 2023. This electric shift is ...

View more: A brand new all-electric boat racing series begins in 2023

Watch: The ultimate guide to EVs is here! Zooming with DRIVEN EP105

On Zooming with DRIVEN this week, the ultimate guide to every new hybrid and electric car you can buy in NZ! David chats about the Nissan X-Trail launch, and Dean checks out the Christchurch EV expo.  Also, a sneak preview of the guide to New Zealand EV chargers video, ...

View more: Watch: The ultimate guide to EVs is here! Zooming with DRIVEN EP105

ROAD TEST: 2022 Mercedes-Benz EQS SUV review

2022 Mercedes-Benz EQS SUV 450 4Matic What is it? The modern take on the luxury car. Gone are the days when buyers just wanted a limousine with a big V8 engine under the bonnet. In 2022 a new generation of buyers want the latest in technology and comfort, and ...

View more: ROAD TEST: 2022 Mercedes-Benz EQS SUV review

‘No more excuses’ – New York announces new zero-emission vehicle mandate by 2035

An Apple executive is leaving the company after being filmed joking about fondling 'big-breasted women' in a viral TikTok video

5 Best New Vehicles With Leather Seats in 2022 According to TrueCar

Is the Ford Maverick’s Truck Bed the Size of a Piece of Plywood?

Was There Ever a Chrysler 300 Hellcat?

Game on: Mercedes-AMG’s new C 63 S is a plug-in hybrid and more powerful than ever

How to survive in the wild

2023 Ram 2500 Heavy Duty Rebel Joins the Off-Road Party

Prime Day 2.0? Score Amazing Deals Before Black Friday on Auto Parts, Gear, Tools, Tires, and More

'No Time to Die' Aston Martin DB5 Raises $3.2 Million at Auction

Toyota Tops Two Categories In J.D. Power Brand Loyalty Study

1986 Mercury Cougar Pulled From Mississippi River


Top Car News Car News