Who Is Covered When Your Child Borrows the Car?

When your child borrows your car, one of the first questions parents ask is:

“If something happens, will my auto insurance cover it?”

The answer depends on several factors including whether your child is listed on your policy, whether they live in your household, and what type of coverage you carry.

Let’s break it down clearly so your family isn’t caught off guard.

Is My Child Covered Under My Auto Insurance?

In most cases, yes but only under certain conditions. Auto insurance policies generally cover:

• Named insureds(you and your spouse, if listed)
• Household family members
• Permissive drivers(someone who has your permission to use the vehicle)
  
  

If your child lives at home and has a driver’s license, they typically must be listed on your policy. Failing to add them could result in denied claims or serious coverage issues.

What Is a “Permissive Driver”?

A permissive driver is someone who has your permission to drive your vehicle occasionally. For example:

• Your college-aged child visiting home
• Your child borrowing the car for errands
• A relative using the car temporarily
  
  

Most policies extend coverage to permissive drivers  but coverage limits may differ. Some insurers reduce liability limits for drivers not listed on the policy.

What If My Child Is Not Listed on the Policy?

This is where families can run into problems. If your child:

• Lives in your household
• Has regular access to your vehicle
• Is licensed
  
  

They usually must be disclosed and rated on your policy. If they are not listed and get into an accident:

• The claim could be denied
• The insurer could cancel your policy
• You may be personally responsible for damages

Always notify your insurance agent when:

• Your child gets their learner’s permit
• They receive their driver’s license
• They move back home
  
  

What Coverage Applies in an Accident?

If your child borrows your car and causes an accident, these coverages may apply:

🚗 Liability Coverage: Pays for injuries or property damage your child causes to others.
🚙 Collision Coverage: Pays to repair your vehicle after an accident (minus your deductible).
🏥 Personal Injury Protection (PIP) or Medical Payments: Covers medical expenses depending on your state.
🛑 Comprehensive Coverage: Covers theft, vandalism, or non-collision incidents.

Coverage usually follows the vehicle, not the driver  meaning your car insurance is typically primary.

What If My Child Borrows Someone Else’s Car?

If your child drives a friend’s car with permission:

• The car owner’s insurance is typically primary.
• Your policy may act as secondary coverage depending on your limits.
  
  

However, coverage details vary by carrier and state.

When Should Parents Review Their Auto Insurance?

You should review your policy when:

• Your child gets a permit or license
• You buy or sell a vehicle
• Your child moves out or moves back home
• There’s a major life change in your household

An annual policy review can prevent coverage gaps and unexpected costs.

Protect Your Family Before an Accident Happens

Letting your child borrow the car is normal. Assuming you’re fully protected without reviewing your coverage is where families get into trouble.

If you’re unsure whether your child is properly listed, if you’re worried about liability limits, or if you want to explore ways to keep premiums manageable while maintaining strong protection, it’s smart to review your policy now not after a claim.

📞 Call Michaels Insurance Group today for a free quote or policy review.

(631) 629-2233
(386) 274-8150

A quick conversation can help ensure your family is protected the right way  with no surprises.