Will I be covered by my family member’s insurance if I borrow their car?

Car insurance works a little differently than other types of insurance, and can be temporarily extended to cover other drivers. Typically, the insurance company will list all licensed drivers in your household on the car policy, and your rates may be adjusted to account for exemplary or less than perfect driving records among your family members.

If someone outside of your household wants to use your car, most insurance companies will allow you to make a temporary loan. If they will drive the car for more than a few hours, notify your insurance company and give them the opportunity to check the driving record of the proposed drivers. For an extended loan, the insurer will add a small fee to your premiums, but for a short term loan they will be satisfied that you took the time to notify them of the change in drivers.

Your insurance will not cover someone who does not have a valid driver license. If an unlicensed driver gets into an accident with your vehicle, the insurance company will deny the claim and may cancel your coverage as well. Additionally, some jurisdictions can hold you personally liable for allowing someone to drive without a license.

Another example would be a new driver in your family. Since the car insurance rates for a young driver are so expensive, parents commonly add the new driver to their own coverage for a few years. This will still result in a rise in premiums of as much as 50%, but will still be much lower than the young driver would pay individually.