What Happens When You Are Driving a Car and Have an Accident But You Are Not on the Insurance Policy?

Permission from Owner

In the majority of states, auto insurance follows the vehicle and not the driver. Permission from the vehicle owner for someone else to drive the car is all that’s necessary to ensure coverage in an accident. If a family member or friend operates the vehicle on a more frequent basis, you may be required to add this person to your auto insurance policy as a driver. Your auto insurance policy may restrict a certain age group from driving your vehicle, such as a driver under the age of 18. In this case, even if you give the driver permission, your insurance won’t cover the damages if an accident occurs.

Collision and Comprehensive Coverage

If you are driving a friend’s vehicle who does not have collision or comprehensive coverage, his insurance company won’t pay for damages to the vehicle if it’s in an accident. Collision coverage pays for damages to the insured vehicle in an accident involving another vehicle or property such as a telephone pole, whereas comprehensive pays for damage to the vehicle when it’s involved in a weather-related event. This means your friend could look to you for the cost of repairing his vehicle. Your out-of-pocket expenses in paying for damage to a vehicle in an accident could be thousands of dollars.

Primary and Secondary Insurance

In an accident, the vehicle owner’s auto insurance may act as the primary policy for the purpose of paying for damage sustained to the vehicle and other vehicles per the policy’s coverage limitations. According to the Car Insurance Rates website, your own auto insurance may act as a form of secondary coverage for paying for medical expenses and any damages relating to your liability for causing the accident. If you are not liable for causing the accident, your own auto coverage may not be used.

Driving Without Permission

If you do not have permission to drive someone’s vehicle and are involved in an accident, your own auto insurance is used to cover damages, injuries and liability. If your auto insurance does not have sufficient coverage to pay for damages or medical expenses, you could be sued by other drivers or injured parties in civil court in an attempt to recover repair and medical treatment costs. If you have no auto insurance and are driving a vehicle without permission, you may be considered driving without insurance. This crime usually carries a fine and suspension of driving privileges.

Quick Money Savings Tip For Safe Drivers

There are dozens of auto insurers – Which one will give you the best rate?

Step 1) Choose your vehicle make below.
Step 2) On the next page, complete the 4 minute questionnaire, and you'll have the opportunity compare the best rates in your area.
Step 3) Keep more money and possibly save hundreds!