It’s a common question that we get a lot. You want to let a friend or neighbor borrow your car for something, but what if there is an accident while they’re driving?

If you loan your vehicle to someone who is not a named insured on your policy, generally, your insurance will still cover them while they drive your car. This only applies if you lend it to someone for a short period of time. If you let someone borrow a vehicle indefinitely, then they need to named on your insurance policy. But, typically, your insurance will follow your vehicle, as long as the person who you lend the car to has your permission to use it temporarily, and has a valid driver’s license.

However, there are some other factors to be aware of. Let’s look at a few examples of common situations.

You loan your friend your pickup truck so he can move some furniture.

In this scenario, you are letting someone borrow your vehicle for a short period of time. This friend has a valid driver’s license and has your permission to use the vehicle. It is not replacing his own vehicle permanently. If an accident were to occur while he is driving, then your insurance would be the primary coverage in this instance. Your friend’s insurance would be secondary. If your friend is at fault and the damages from the accident exceed your policy’s limits of liability, then coverage under his policy would be applicable.

Of course, if the friend is not at fault, then the at fault driver’s insurance would cover the claim, the same is if you had been the driver.

Your car is damaged while in the possession of a friend

Let’s say you lend your truck to the same friend, and he parks it outside a store while he goes inside to get some boxes he needs for his move, and when he comes back outside, he sees that it has been hit by another car in the parking lot who left without leaving a note or taking any responsibility. In this case, if your policy has uninsured motorist coverage, it would cover the damage as a hit and run. If not, then your policy’s collision coverage would cover the claim, provided you have collision coverage.

What if instead of a hit and run, your car has been vandalized. Someone has dragged a key up and down both sides and smashed a window. This is the kind of claim that would be covered under comprehensive, also called other-than-collision coverage. Your policy again would cover this, the same as if you were the driver, provided you have such coverage on your policy.

You decide to lend your car to someone for an extended period.

If you let someone drive your car for an indefinite period of time, then you need to talk to your insurance agent, if you have one. Different companies have different rules about who they allow to be added to an insurance policy if they do not live in the same home. If you don’t have an insurance agent, then you’ll need to talk to your insurance company directly. If someone drives a vehicle you own regularly but is not named on your policy, this could lead to your insurance company non-renewing you for not being honest about who is driving the car. It is always better to ask first in case it is against the company’s rules. Then you can decide if you want to look for a different insurance policy, or reconsider if loaning your car for a long period of time is a good idea.

In general, your car insurance follows your car, whether you are driving it or someone else is with your permission. If you have questions, the best thing to do is just to ask your local insurance agent. If you don’t have one, this is another reason to consider finding one before your next renewal.