Before Letting a Friend Use Your Car: What Happens If They Cause an Accident?

It’s a situation many people don’t think twice about: a friend asks to borrow your car for a quick errand, and you hand over the keys without hesitation. But before you do, it’s important to understand what really happens if your friend gets into an accident while driving your vehicle.

In both New York and Florida, car insurance follows the car not the driver. That means even if someone else is behind the wheel, your insurance is typically the one on the hook if something goes wrong.

1. Your Insurance Pays First

If your friend causes an accident, your auto insurance generally becomes the primary coverage. That includes your:

• Liability coverage (for injuries or damage caused to others)
• Collision coverage (to fix your vehicle)
• Comprehensive coverage (if applicable)

Your friend’s insurance may only be used as secondary coverage if it applies at all.

2. You’re Responsible for the Deductible

If your car needs repairs, your collision deductible applies. Even if your friend was driving, you’re the one responsible for paying it to get your vehicle fixed.

3. Your Rates Could Increase

Insurance carriers don’t care who was driving they care which car was involved. If a claim is filed under your policy, your premiums may go up at renewal, even if you weren’t behind the wheel.

4. “Permissive Use” Isn’t Universal

Not all policies include permissive use, and some carriers place limits on it. If your policy has restrictions and your friend isn’t a listed driver, the claim may be reduced or denied.

5. Your Friend May Still Be Liable

Even though your insurance pays first, your friend could still be financially responsible if:

• Damages exceed your policy limits
• They were driving recklessly or while impaired
• They violated state law

6. If Your Friend Is Unlicensed or Excluded

If your friend doesn’t have a valid license or is specifically excluded from your policy your insurance may not cover the accident at all. That leaves you personally exposed to significant financial risk.

7. Consider Whether the Favor Is Worth the Risk

Loaning your car might feel like a simple act of kindness, but it comes with real financial consequences. Understanding the risks can help you make an informed decision before handing over your keys.

Have Questions About Your Auto Coverage?

Many drivers don’t realize the gaps or limitations in their policies until it’s too late. If you’re unsure whether your policy covers permissive use or if you want a quick review our team can help.

Contact The Michaels Group for personalized guidance. If you don’t currently have a broker, we can become your broker at no additional cost and we’ll help make sure you’re not missing out on valuable discounts.

We’re your trusted, technology‑forward insurance partner serving New York and Florida. Let us help protect what matters most.