Lending your car to someone you trust—like a friend, sibling, or even your teenager—might seem like no big deal. But when it comes to insurance, it’s not always as simple as handing over the keys.
At ABQ Insurance, one of the most common questions we get is: “Am I still covered if someone else is driving my car?” The answer? Usually, yes—but it depends on your policy, the driver, and the circumstances.
Before you let someone borrow your car, here’s what you should know about how insurance works when someone else is behind the wheel.
1. Insurance Typically Follows the Vehicle, Not the Driver
In most cases, your auto insurance policy covers your car, no matter who’s driving it—as long as you gave them permission. This means if your friend gets into an accident while driving your car, it’s usually your insurance that will be responsible for covering the damages.
However, this coverage usually only applies to occasional drivers. If someone is using your vehicle regularly (like a roommate or significant other), they should be added to your policy as a listed driver.
2. If There’s an Accident, Your Insurance Pays First
If the person borrowing your car causes an accident:
- Your liability coverage will likely cover the damages to the other vehicle and injuries to others
- Your collision coverage (if you have it) can help repair your own vehicle
- You’ll be responsible for paying your deductible, and the accident could affect your rates
If the cost of the accident exceeds your policy limits, the borrower’s insurance might kick in as secondary coverage—but only after yours is exhausted.
3. What if They Don’t Have Insurance?
If the person borrowing your car doesn’t carry any insurance at all, your policy will still likely provide primary coverage—as long as you gave them permission. That said, you take on full responsibility for anything that happens.
This is why it’s important to only lend your car to licensed, responsible drivers that you trust.
4. When Lending Becomes a Risk
Your coverage could be denied or limited if:
- The driver was unlicensed or intoxicated
- They took the car without your permission
- They were using your car for a commercial purpose (like rideshare driving or delivery)
Also, if your friend or family member gets a ticket or accident in your car, it could show up on your insurance history, even though you weren’t driving.
5. Protect Yourself Before You Share the Keys
Here are a few things you can do to stay protected:
- Confirm the borrower has a valid driver’s license
- Make sure your policy includes adequate liability coverage
- Ask your agent about adding permissive use drivers if needed
- Consider increasing your uninsured/underinsured motorist coverage just in case
Need Help Reviewing Your Policy?
If you’re planning to let someone borrow your vehicle—or you regularly share cars within your household—ABQ Insurance can help you understand your policy and avoid unwanted surprises.
Looking for a customized auto insurance quote Albuquerque NM drivers trust? We’ll walk you through your coverage options and make sure your policy fits your lifestyle.
Call 505-217-2100 to review your coverage and drive with confidence—no matter who’s behind the wheel.
