Do you loan your car to friends? Does your auto insurance cover them if an accident occurs? Posted March 2025

Have you been asked by a friend to borrow your car? It happens all the time. What about the liability involved?

The good news is that if you willingly loan your car to somebody and they get into an accident with it, your auto insurance policy will likely cover the damages to your vehicle along with injuries. If your friend carries their own insurance, this greatly reduces your risk. If you find your friend is borrowing your car on a regular basis you may want to consider adding them to your auto insurance policy. If your friend does not carry their own auto insurance, you could be at risk for out-of-pocket expense if your policy limits become exhausted.

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