If a friend wrecked your car, your insurance will pay for any damage the friend caused, as long as they had your permission to use the vehicle. Your insurance policy will apply first, and if the driver’s liability exceeds your policy limits, their own insurance can cover the rest. If they are uninsured, then they will be financially responsible for any medical or property damage expenses that surpass your policy’s limits.
Keep in mind that even if you weren’t the one who was driving when the accident occurred, your rates will likely go up because a claim is being filed with your policy. You will also lose any discounts related to good driving that you may have previously qualified for.
When Car Insurance Doesn’t Cover a Friend
Generally, your car insurance covers any licensed driver that you allow to drive your vehicle. This is often referred to as permissive use. However, there are a few exceptions to permissive use, including drivers you have specifically excluded from your policy, drivers who live in the same household as you but are not named on your insurance, and drivers who cause an accident while intoxicated or committing a crime.
Also, also keep in mind that if you knowingly lend your vehicle to someone who cannot legally drive, perhaps because they’re intoxicated or unlicensed, then you can be held partially liable for injuries or property damage, since your insurance will not pay for any of it.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines
. This question was posted by WalletHub.
Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.