Does my auto insurance cover damage caused by a driver who borrowed my car without permission?

Does auto insurance cover damage caused by a driver who borrows your car without permission? If someone borrows your car without permission, they are technically stealing it, even if this crime is not reported. Knowing how to drive without insurance is one thing, but knowing that it is illegal is more important.

When a stolen car gets into a traffic accident, neither the vehicle’s owner nor the auto insurance company that insures the car is liable. Likewise, no person is responsible for the crimes of another if they were not involved in any way.

Permissive and Non-Permissive Use for Borrowing a Car

There are occasions when you may allow someone to drive your auto. This is called “permissive use.” When you do this occasionally, your auto insurance should cover any accident damage as if you were driving the car.

However, be aware that permissive use may be granted by a seemingly innocent statement, such as “use the car when you want.”

Suppose a person drives your car frequently. Then, adding them to your insurance policy is a good idea. An accident claim may be denied if a person is not a named driver on your policy and uses the vehicle more than occasionally.

When someone takes your car without asking you first, this is called “non-permissive use.” That person is responsible if they cause an accident. Your insurance will not cover them.

Read more: What is the difference between named driver and any driver auto insurance?

Hit-and-Run Accidents With a Borrowed Car

The most common reasons for a hit-and-run accident are that the driver is under drugs or alcohol and the vehicle is stolen. CNN reported a traffic safety crisis marked by a spike in hit-and-run deaths in 2022, a 26% increase from the previous year.

A nightmare scenario is your vehicle is used without permission and is involved in a hit-and-run accident where someone dies.

Moreover, you may have difficulty proving that you were not operating the vehicle. This might be more challenging if you did not report the car as stolen because you thought someone you know, such as a friend or family member, borrowed it without permission. In such situations, you might find yourself wondering, Does my auto insurance cover damage caused by a friend who borrowed my car and got into an accident? It’s essential to review your auto insurance policy carefully to understand the extent of coverage for scenarios involving non-permitted drivers.

Your insurance will not cover this situation. Also, you need to be concerned about — what happens if fault can’t be determined after a car accident? This may be troublesome if someone borrowed your car without permission.

Reducing the Risk of Unauthorized Use of a Vehicle

If you want to reduce the risk of someone using your car without permission, eliminate the possibility of easy access.

For example, do not leave your car keys in the ignition, under the visor, in the glove box, on a table by an open window, or hanging on the wall where anyone can easily get to them. Instead, keep your car locked, and do not hide a spare key in an obvious place.

Auto Insurance Coverage for Non-Owners

Affordable non-owner auto insurance coverage is something to consider for people who wish to drive an auto they borrow that another person owns. This coverage extends to any car they drive, including rental vehicles. However, these policies only provide liability insurance coverage for one person.

Non-owner auto liability insurance covers damage to other vehicles, people, or property but does not cover damages to the vehicle you drive. If you drive a car in the United States, this insurance meets the legal requirement that you carry affordable liability auto insurance coverage.

In addition, consider adding the optional loss damage waiver insurance, which covers the vehicle’s cash value if stolen.

Auto Insurance Coverage if Someone Borrows Your Car Without Permission: The Bottom Line

Reducing the chances of someone using your car without permission is a good idea. If you have teenagers in the house, they may have the temptation to borrow the family car and go for a joy ride without permission.

We learned that auto insurance does not usually cover damage caused by a driver who borrowed your car without permission. This rule includes members of your family. Family members who drive your vehicle should be named in the insurance policy.