What You Should Know Before Handing Over the Keys
It’s a familiar situation: a friend’s car is in the shop, a family member needs a quick errand, or someone visiting needs a set of wheels. You hand over your keys without a second thought — until the question hits:
What if they crash? Whose insurance pays? What are the consequences?
Let’s walk through the realities, so you’re prepared before the keys leave your hand.
Insurance Follows the Car, Not the Driver
The most important thing to understand: in most cases, your insurance follows your car — not the driver.
If your friend crashes your vehicle, it’s likely your policy that’s on the line, not theirs.
This means your liability, collision, and comprehensive coverage would likely be used. Your deductible would still apply, and your premiums might increase even if you weren’t driving.
“Permissive Use” — A Critical Term
Most insurance policies allow what’s called permissive use — coverage extends to someone you allow to drive your car, as long as they have a valid license and aren’t doing anything illegal.
Important: If someone uses your car regularly (like a roommate or adult child), they should be formally listed on your policy. Otherwise, you risk claims being denied or reduced.
If Damages Exceed Your Coverage
If the accident causes damage beyond your policy limits, the injured parties may pursue the driver’s insurance next — if they have it. But your policy is still primary.
In a worst-case scenario, both you and your friend could be held personally responsible for anything unpaid.
What If They Didn’t Have Permission?
If someone drives your car without your permission, insurance becomes much more complicated. Your insurer will investigate to verify unauthorized use, and they may deny the claim.
In that case, the at-fault driver’s insurance might step in — if they have any. Otherwise, it could result in expensive, drawn-out legal issues.
A Few Smart Questions Before Handing Over the Keys:
- Is the person licensed and a responsible driver?
- Are they already listed on your policy if they use your car often?
- Is your current insurance sufficient to protect you if something serious happens?
Bottom Line
Lending your car can feel casual — but if something goes wrong, it’s your insurance, your deductible, and your record on the line.
Strong, tailored coverage isn’t just about the vehicle — it’s about protecting yourself from the unexpected.
When in doubt, have a conversation with your agent before you hand over the keys. Better a five-minute check-in than a major headache later.
