Lending Your Car to an Uninsured Driver Can Be Problematic

Lending your car to an uninsured driver can be problematic if they are in an accident or collision. If that driver isn’t listed on your policy, your insurance company can deny coverage for injuries and damages. Your liability coverage will pay for any damage sustained by other drivers, but you may pay out of pocket for personal injuries and repairs after lending your car to an uninsured driver.

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Natasha McLachlan is a writer who currently lives in Southern California. She is an alumna of California College of the Arts, where she obtained her B.A. in Writing and Literature. Her current work revolves around insurance guides and informational articles. She truly enjoys helping others learn more about everyday, practical matters through her work.

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance for 10 years. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate...

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Reviewed by Laura Walker
Former Licensed Agent

UPDATED: Nov 15, 2020

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There may come a time when you want to lend your vehicle to someone else. Before you let anyone get behind the wheel of your care, not matter who they are, be sure that they are listed on your insurance policy. The people that want to drive your care need to be licensed and listed in order to be covered on your policy. But before they are covered, you need to notify your insurance company.

It is usually not a big deal for someone, like a friend who needs to borrow your car, to be covered on your insurance if you take the time to notify your insurance company before you lend the car to your friend. Since it is not possible for every person who might drive your car to be listed on your insurance taking the time to notify your insurance company in time is crucial. A call or a note to your carrier with information about the person borrowing your car should suffice in most cases. If your insurance company has any issues with the situation they will let you know.

Be aware of what can happen if an uninsured driver has an accident while driving your car. There are a couple of possible scenarios. The first being, that the driver is legally licensed. This scenario may not be a problem for your insurance company and they may provide coverage. Things get worse if an unlicensed driver has an accident in your car. You may end up paying for some or all of the damages incurred out of your own bank account. Since your insurance company is not responsible to give coverage to anyone not listed on your policy, it is of the utmost importance that you tell your insurance company anytime another person will be driving your car.

It is a serious breach of your policy to not notify your car insurance company when another person will be driving your car. Your policy could be canceled instantly if a driver, who is not listed on your policy, is pulled over by police while driving your car. If this happens and your policy gets canceled you will have to find a new insurance company that is willing to cover you, and to pay potentially large deposits to get new coverage. And you will still have to deal with the repercussions of any accidents that have taken place. You don’t want to be put in this situation, so take the steps needed to avoid them.

It is so simple to notify your insurance company if someone will be driving your car that is not listed on your policy, that there is no reason not to do it. A simple phone call could make sure that you are protected in case anything does happen, and could save you a lot of money. Your policy may not get canceled if an uninsured driver gets pulled over in your car, but you could end up with a sharp rise in your insurance rates. Take the simple step of notifying your insurance company so that you won’t have to deal with any of these situations.

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