I currently have no car and no insurance, but a valid driver’s license. If I borrow someones car to use, how am I insured in case of an accident?

Depending on the state in which you live and the insurance company providing the coverage, you may be covered under the insurance of the car's owner. In states such as Florida, which have no-fault insurance, it is the vehicle that is generally covered, not the particular driver of the vehicle. (States using a no-fault system) Check the policy of the insured car owner to find out how it deals with someone borrowing the car.

If you are a student and home on vacation or holiday break, the insurance may cover you explicitly, but you will need to be added to your parents' policy by contacting the insurance company. In fact, any time you are driving a vehicle that is not owned and insured by you, it is important to make sure that you are listed as a driver on the policy, just to be safe.

For example, if you had borrowed the car to move, and had an accident, the insurance company could say that since you were not a listed driver they were unable to assess the risk you posed and deny the claim under the grounds that an unapproved driver was behind the wheel. This situation can be avoided by contacting your insurance company and notifying them that another person will be driving the car for a period of time. If it will only be for a day or two, the insurance company may not charge you any rate difference, but if the person will be driving the car on a regular basis they will want to increase your premium to account for the new driver and increased risk caused by the vehicle being used more frequently.