If I Have Full Coverage, Can I Drive Someone Else’s Car?

Your personal auto insurance may extend to vehicles you borrow. This article explores how your “full coverage” protections might apply if you drive someone else’s car.

Understanding Auto Insurance Coverage Extension

Auto insurance policies operate on the principle that coverage “follows the car” rather than solely “following the driver.” This means the vehicle owner’s insurance policy is the primary source of coverage in an accident, regardless of who is driving. Your personal policy then acts as secondary coverage, potentially stepping in if the primary coverage limits are exhausted.

A key factor in coverage extension is “permissive use.” If you have the vehicle owner’s express or implied permission to drive their car, their insurance policy will cover you. Most standard auto insurance policies include a permissive use clause, extending coverage to occasional drivers not explicitly listed on the policy. However, if someone regularly drives a vehicle, they should be listed on the owner’s policy to ensure proper coverage.

“Full coverage” in personal auto insurance refers to a policy that includes liability, collision, and comprehensive coverages. Liability coverage addresses damages you cause to others, while collision and comprehensive coverages protect your own vehicle. While these coverages are expected with a “full coverage” policy, the specific terms and limits can vary significantly between policies and insurers.

Your Liability Coverage While Driving Another’s Car

If you drive someone else’s car with permission and are involved in an at-fault accident, your personal auto insurance policy’s liability coverage acts as secondary protection. The vehicle owner’s liability insurance is primary, paying for damages and injuries you cause to third parties up to its limits first. This includes covering costs for bodily injury to others and property damage to their vehicles or assets.

Should damages exceed the limits of the vehicle owner’s primary liability policy, your own liability coverage would then cover the remaining costs. This secondary layer of protection can prevent you from being personally responsible for significant expenses beyond what the owner’s policy provides. Understand that while your policy may offer secondary coverage, the incident could still impact the vehicle owner’s insurance rates.

Coverage for Damage to the Borrowed Vehicle

Your personal collision and comprehensive coverages extend to non-owned vehicles you drive with permission. Collision coverage addresses damage from an impact with another vehicle or object, while comprehensive coverage applies to non-collision incidents like theft, vandalism, fire, or natural disasters.

Similar to liability, the vehicle owner’s collision and comprehensive coverage would be primary for damage to their car. Your policy would then provide secondary coverage, potentially covering costs if the owner lacks such coverage or if their policy limits are exhausted. Your deductible for collision or comprehensive claims would still apply to any payout from your policy. Note that if the borrowed vehicle is significantly more valuable than your own, your policy’s physical damage limits might not fully cover the repair or replacement costs.

Special Considerations for Borrowed Vehicles

Coverage for borrowed vehicles can have specific nuances depending on the relationship between drivers and the purpose of vehicle use. For instance, household members are often treated differently than other occasional drivers. Many policies require all licensed drivers residing in the same household to be listed on the policy; failure to do so could result in denied coverage. Some policies may include “household exclusion” clauses that limit or deny coverage for injuries to family members living in the same home, even if listed on the policy.

If you drive a vehicle belonging to an uninsured owner, your personal policy’s liability coverage would still act as secondary. However, your own uninsured/underinsured motorist coverage could apply to your injuries if the at-fault driver has insufficient or no insurance. This coverage helps bridge the financial gap when the responsible party cannot cover your medical bills or property damage.

Personal auto insurance policies extend coverage to rental cars, making additional insurance purchased from the rental company potentially redundant. Your liability, collision, and comprehensive coverages apply to a rental vehicle as they would to your own car, subject to your policy’s limits and deductibles. It is always advisable to confirm the specifics with your insurer before renting, especially for business use or for high-value or exotic rental vehicles.