Enter your ZIP code:

Car Insurance & Roommates or Family Members

If a friend or family member borrows your car and causes an accident, who is financially responsible? If both of you have auto insurance, your insurance company will cover all but your deductible. Your auto insurance policy insures your vehicle, plus you, your relatives and anyone else you give permission to use your car.

On the other hand, if your friend or family member causes an accident resulting in serious bodily injury and property damage, that friend's or family member's policy will cover the bodily injury liability, and your policy will cover the property damage caused by your car. As the car's owner, your liability insurance also covers the cost of your legal fees in the event you are sued. However, if your liability limits are exceeded, the courts can appropriate funds from your home or other personal assets in order to recover the cost of damages. Liability coverage will not pay for damages beyond the limit for which you are insured.

If you lend your car to someone who does not have insurance, however, you are inviting trouble. If the damage your friend causes exceeds your insurance policy limits, the injured party can sue you for medical and property damage expenses.

What if your friend or family member drives your car without your permission? You're likely not to be held financially responsible.** This is because it was done without your knowledge. In this case, your friend's insurance will cover the costs incurred. If your friend doesn't have insurance, your collision insurance will cover the damages to your vehicle; your liability coverage will cover damage to the other driver's property. Unfortunately, the insurance company will assume your friend has permission to use your car unless there are clear indications otherwise or there are extenuating circumstances (such as a drunken friend who takes your car without your knowledge).

If your car is stolen and then involved in an accident, you will not be held responsible for damage done to others and their property—but you will probably have to use your own collision insurance to pay for the repairs to your car. Even in the unlikely event the thief has auto insurance, the thief's insurance company will not cover damage incurred during a criminal act.

Regardless of the scenario, it is wise to understand the intricacies of your insurance policy and exercise common sense when loaning your car to roommates, friends and relatives.

Remember, insurance mandates differ by state. Check with your state's department of insurance to learn the rules and regulations where you live.

List of Articles
No. Subject Author Views
85 Rental Car Insurance: Do You Really Need It? youcomparequotes 17576
84 Auto Insurance: The Secret Weapon for Saving at the Pump youcomparequotes 17901
83 Getting the Cheapest Car Insurance in Your State youcomparequotes 16841
82 Play It Safe for Cheap Truck Insurance Rates youcomparequotes 17215
81 How to Get Discount Auto Insurance youcomparequotes 17656
80 Insurance for Van Lovers youcomparequotes 17325
79 Car Insurance That Fits Your Needs youcomparequotes 17057
78 Online Car Insurance Quotes in 5 Easy Steps youcomparequotes 17241
77 Getting Insured with an Online Auto Insurance Quote youcomparequotes 18120
76 Home and Auto Insurance: Sure-Fire Protection in Unsure Times youcomparequotes 17062
75 How to Keep Teen Car Insurance Quotes at Bay youcomparequotes 19293
74 Choosing Cheap Online Car Insurance That Fits Your Life youcomparequotes 17641
73 Auto Insurance from InsureMe youcomparequotes 17560
72 Car Insurance Comparisons Save You Time & Hassle youcomparequotes 17914
71 Car Insurance Companies & InsureMe Save You Money youcomparequotes 18309
70 Buying and Insuring a New Car youcomparequotes 16690
69 Compare Auto Insurance Rates youcomparequotes 17029
68 Safety Measures Lower Auto Insurance Quotes youcomparequotes 16531
67 Getting Car Insurance Quotes, from Beginning to End youcomparequotes 16630
66 The Car Insurance Quote & Ratings Factors youcomparequotes 17116
65 What's Behind Your Auto Insurance Quotes? youcomparequotes 17243
64 How Cheap Car Insurance Can Save You Money youcomparequotes 16497
63 How to Reduce Car Insurance Prices youcomparequotes 17094
62 Getting Insured with Free Car Insurance Quotes youcomparequotes 17314
61 Auto Owners Insurance & Costly Driving Mistakes youcomparequotes 16578
60 Auto Insurance Cost & Your Ride youcomparequotes 17110
59 How No Fault Auto Insurance Works--or Doesn't youcomparequotes 16899
58 How to Get the Cheapest Car Insurance youcomparequotes 16803
57 Selecting a Car Insurance Company youcomparequotes 17510
56 Finding New Car Insurance Following Cancellation or Nonrenewal youcomparequotes 17117
55 Get the Best Car Insurance Rates Around youcomparequotes 17358
54 Factors That Affect Your Car Insurance Quotes youcomparequotes 16380
53 Child Safety Belts Keep Kids Safe youcomparequotes 17060
52 Speeding and Car Insurance Rates youcomparequotes 16758
51 Not At Fault Car Insurance & Accidents youcomparequotes 16900
50 State Auto Insurance Becoming Available youcomparequotes 17180
49 Auto Insurance Gap Narrowed by Insurance youcomparequotes 17632
» Car Insurance & Roommates or Family Members youcomparequotes 17214
47 PIP and No-Fault Auto Insurance Reform youcomparequotes 16909
46 PIP and No-Fault Auto Insurance Reform youcomparequotes 16813
45 SUVs: Minor Collision, Major Damage youcomparequotes 17357
44 Severe Weather Driving Tips youcomparequotes 17082
43 Avoiding Aggressive Drivers youcomparequotes 17978
42 Safety Tips & Car Insurance for Teens youcomparequotes 17060
41 Insurance for Cars: It's Your Choice youcomparequotes 17018
40 Car Insurance Quotes Save You Money youcomparequotes 17079
39 Finding & Comparing Auto Insurance Specialists youcomparequotes 17933
38 Safety Features Save Lives & Money youcomparequotes 16830
37 Curbing Auto Insurance Prices youcomparequotes 16377
36 Teen Auto Insurance youcomparequotes 16653
35 Car Insurance: Your Questions Answered youcomparequotes 16580
34 How to Buy Car Insurance youcomparequotes 17346
33 Vehicle Insurance: Covering Any Kind of Car youcomparequotes 16623
32 Truck Insurance for Your Pride & Joy youcomparequotes 16411
31 How Insuring a Used Car Can Save You Money youcomparequotes 17238
30 All-in-One Policies Insure Car & Home Together youcomparequotes 17114
29 Credit Scores & Car Insurance youcomparequotes 17760
28 Classic Car Insurance Protects Your Relic Ride youcomparequotes 16272
27 Reducing SUV Insurance Rates youcomparequotes 16801
26 Good Driver Car Insurance Rewards Safe Driving youcomparequotes 17316
25 How to File an Auto Insurance Claim youcomparequotes 16954
24 Avoiding Deer Collisions While Driving youcomparequotes 17424
23 Cheap Auto Insurance through Safe Driving youcomparequotes 16748
22 Auto Insurance Basics That Save youcomparequotes 17177
21 It's Official - Men Are Terrible Drivers youcomparequotes 18666
20 Car Insurance Quote Saves Money and Stretches Income youcomparequotes 17428
19 Auto Insurance Quote Heavily Dependent on Driver Behavior youcomparequotes 16951
18 Car Insurance Quotes Separate Fact from Fiction youcomparequotes 17207
17 How What You Drive Affects Your Auto Insurance Quotes youcomparequotes 16963
16 Cheaper Car Insurance in 8 Easy Steps youcomparequotes 17332
15 Save Hundreds on Your Car Insurance Without Switching to Geico youcomparequotes 16777
14 Your Options in Motorcycle Insurance youcomparequotes 16790
13 The Advantages of RV Insurance youcomparequotes 17167
12 Enjoying the Classics: How to Insure Your Old Relic youcomparequotes 34672
11 Insuring Your Teen Driver youcomparequotes 16938
10 The SR22 & Car Insurance youcomparequotes 16434
9 Auto Insurance & Generic Parts youcomparequotes 17141
8 A Trip Gone Wrong: Summer Breakdown on the Road youcomparequotes 18264
7 Drowsy Drivers, Wake Up! youcomparequotes 16433
6 Cheap Car Insurance Protection You Deserve youcomparequotes 17799
5 Top 8 Safety Picks for Car Insurance Discounts youcomparequotes 17229
4 Drivers: 7 Important Facts about Texting That Could Save Your Life youcomparequotes 21300
3 Buckles: Use Them for Safety, Not for Show youcomparequotes 16747
2 Auto Insurance Quotes youcomparequotes 17207
1 Why You Should Give Thanks -- And Stay Home This Year youcomparequotes 17344
XE Login