can i loan a car to a friend who has their own insurance

Free Insurance Quote Comparison

 Secured with SHA-256 Encryption

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by

UPDATED: Mar 19, 2015

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

Insurance Question from Orchards, WA

Asked on 03/19/2015

can i loan a car to a friend who has their own insurance i have a car i want to loan to a friend. my friend has their own insurance ( cr22 ). if anything happens could i be liable ?

Answer given on March 22, 2015

In auto insurance, the insurance follows the car. If your friend drives your car, they will be covered under your policy as a permissive user. If they cause an accident in your car, your insurance will be responsible for any damage or injuries sustained in the accident. This applies even if the other driver has their own insurance. If the accident causes damages or injuries that exceeds your liability coverage, then the insurance for the other driver will be applied to that excess amount. They would then need to report the accident to their auto insurance company. Since the other driver is not listed on your insurance policy and they have their own insurance, your insurance rates will not be affected if the friend causes the accident. However the rate on their insurance policy can go up.

IMPORTANT NOTICE: These answers are for general information purposes only and are provided by the person answering and AS IS. It has not necessarily been reviewed by the management staff of nor is it binding any insurance agent, broker, or other insurance professional or any attorney or insurance company. Insurance laws, regulations and practices vary from state to state and insurance policies and practices differ from company to company, by type of policy, by state and locality and by type of insurance. Tiny variations in the facts, policy language or a detail not set forth in a question often can change the outcome or a professional's conclusion. Although has confirmed that the answer(s) was/were provided for the account of an experienced insurance professional, that professional may not be licensed in the state referred to in the question, and may not be experienced or up to date in the subject area. Unlike the answers provided here, upon which you should NOT rely, for personal advice you can rely upon we suggest you consult a licensed insurance professional in your area or retain a licensed attorney listed on to represent you.

Free Insurance Quote Comparison

Enter your ZIP code below to compare cheap insurance rates.

 Secured with SHA-256 Encryption