If I let a friend drive my car for a day should I tell my insurance company?

Question

If you have a friend visiting from out of state and you let them drive your car to a museum or something, as a one-off thing, I think it's a little impractical to let your insurance provider know that your friend is driving the vehicle, but practicality aside, would informing them be the proper thing to do?

Like what happens if your friend is driving your vehicle and they get in an accident? If there was a serious threat of that then letting the insurance company know might be prudent, but then again, maybe just not lending the vehicle to my friend would be just as prudent (and would eliminate the issue). But then again, it seems to me that insurance is something you get not because something is probable but because something is possible.

Answer 1

Most of this content is gleaned from Geico's website:

There is no need to notify the insurance company about this situation, however there are some rules and liabilities to be aware of before you lend the car to someone. In case of an accident, your insurance will be used meaning YOUR deductible and, if damages exceed your coverage, you could be liable for additional damages.

According to Geico, a large US-based insurer handling 10.8% of the market, "you should ask a few more questions before letting another driver head into the sunset in your vehicle—or before borrowing someone else’s ride."

If you’re loaning out your car, ask:

Is the borrower licensed to drive? If they’re visiting from out of state, you don’t need to worry. If they have a driver’s license from another country, check your state’s requirements—the driver may need to apply for an International Driving Permit before he or she arrives in the U.S.

Does the borrower have a good driving record? If they have a history of fender benders and you keep your vehicle in pristine condition, it’s OK to not hand over the keys.

Is my insurance up to date? Every state requires a minimum level of auto insurance coverage, and some stipulate that in case of an accident, the car owner’s auto insurance—not the driver’s—provides primary coverage. (So if the driver rear-ends someone or bumps another car in a parking lot and your insurance has lapsed, you could be liable for damages.) Depending on your state’s regulations, you may also want to verify whether the driver has his or her own car insurance.

What do they plan to use the car for? If it’s any kind of commercial activity, like driving for a ridesharing program, you’ll need to check your auto insurance policy. Again, in many states, the car owner’s auto insurance provides primary coverage. If the car is being driven for commercial purposes and you only have a personal policy, you may not have sufficient coverage.

Additionally:

Will the borrower use the car regularly? Your newly licensed teenager may phrase it as ‘borrowing’ the car, but if they’re using it to go to sports practice or the mall every weekend (and live in your household), you should add them to your insurance policy as a regular user.

Answer 2

Check your policy. Most policies in US do not require you to declare/inform the insurance company about one of drivers, assuming that they have valid licence. Your policy would cover any damage.

Note claim if any would get recorded against you and may result in increased premium in next year.

Answer 3

Answering from Germany but my advice should be applicable worldwide:

I had that issue two times. Each time I just gave my insurance a short call to their service line. I described my plans:

First time, I was too ill to safely drive myself. Problem was I've been to another city. So I asked a friend and his partner (she's also a friend of mine but not as close), if they could fetch me and my car. I called my car insurance. They told me it wasn't covered as a regular occurrence in my policy but they would allow it as an exception, because it was safer (also for them) to do so.

In between I upgraded my policy to include arbitrary drivers but forgot that I had done so.

Second time, I intended to lend my car to my sister-in-law while I was on vacation. They checked my policy and said it's OK and I wouldn't have needed to call to tell them, because I had upgraded my policy.

Calls were less than 10-15 minutes including waiting in the line. Apparently insurance hotlines are not as crowded as phone company hotlines. However that's probably because people are hesitant to call the former for some reason.

The elegance of this answer lies in that your insurance company will know your policy, country specifics and can still make exceptions. Whether you trust a company to uphold exceptions agreed upon at their hotline is another question. I recommend writing down the name of the service employee as well as time and duration of the call.

Answer 4

Two options:

1. Lend your friend the car after making sure they've got current license and insurance and consulting your insurance company.
2. Help them get a rental car.

# 1 only if you're willing to be financially responsible for anything that happens. Keep in mind that it's not inconceivable that your insurance company says that your coverage applies, but they refuse to pay a claim. Then you could be left holding the bag, or in a legal battle with a (former) friend.

# 2 will save your friendship if there is an incident.

Answer 5

In New Jersey, at least, you pay to insure the car. If someone steals your car, and crashes into a building, you are covered even though YOU aren't driving the car. So no matter who is driving it, the car is covered. Your insurance company might not renew your policy if they find out, for example, that you insured your car with yourself stipulated as the only driver, and your race car driver nephew is actually the regular driver of it. I am not an insurance agent or broker, but I received this information from someone who is.

Answer 6

I read the question "If I let..." as meaning the past. If let your friend drive your car yesterday, without causing any damage, then it is unlikely to benefit you in any way if you tell the insurance about it.

If you want to let your friend drive your car tomorrow, ask your insurance.

Answer 7

Your friend will probably not be covered by your insurance, and depending on the jurisdiction they may be committing a criminal offence for driving while uninsured, and you may also be committing a criminal offence for letting them do so. Impractical or not, you have to get the insurance company's consent for every driver, even if they will only drive the car once for a hundred yards.

But if your friend has their own car insurance back home, it may cover them for occasional use of other vehicles, and they should check that.