Guide
Insurance When You Borrow Someone Else's Car
How coverage works when you drive a friend's or relative's car—permissive use, whose policy pays, what happens on a claim, and when you should be listed instead.
By Dana Whitlock · Staff Writer
Published · Updated
Answer in brief
When you borrow a car with permission, the owner's policy is primary—it pays for damage you cause and for damage to the car, and the claim goes on the owner's record. Your non-owner policy (or your own auto policy) pays excess liability if damages exceed the owner's limits. If you drive the same car regularly, insurers expect you to be listed on the owner's policy; an unlisted regular driver can give the insurer grounds to deny or reduce a claim. Household members are generally not covered under permissive use—they must be listed or excluded.
Who pays what
| Loss | Pays first | Pays second |
|---|---|---|
| Injuries/damage you cause to others | Owner's liability | Your non-owner liability (excess) |
| Damage to the borrowed car | Owner's collision (their deductible) | Nothing from non-owner |
| Your injuries | Owner's MedPay/PIP, then your health or UM | — |
| Owner uninsured | Your non-owner policy may be primary | — |
Occasional vs regular
Borrowing a car a few times a year is permissive use. Driving it every week is regular use; most policies contain a regular-use exclusion or expect the driver to be listed. If you borrow the same car routinely, ask the owner to add you—it protects both of you.
Household members
Insurers assume everyone in a household has access to its cars. An unlisted adult child or roommate who drives is a disclosure problem, not permissive use. They should be listed or formally excluded.
Entries in this guide
Specific questions answered in more depth.
Questions & answers
Whose insurance pays if I crash a borrowed car?
The owner's policy first; your non-owner or own policy for excess liability.
Does the owner's rate go up if I crash their car?
Yes—the claim is on their policy.
Can my roommate drive my car under permissive use?
Not regularly. Household members should be listed or excluded.
Terms used in this guide
- Permissive use
- Occasional driving of another person's car with permission; the owner's policy is primary.
- Secondary (excess) coverage
- Coverage that pays after another policy's limits are exhausted—how a non-owner policy usually works in a borrowed car.
- Regular-use exclusion
- Policy language excluding coverage for cars you drive regularly but are not listed on.
Sources and references
Legal figures on this page (minimum limits, filing periods, statutory benefits) are checked against the primary law or the state insurance regulator listed below. Links and figures last verified Nov 2026.
- 37 TAC § 25.5 — enforcement of failure to maintain financial responsibility — Texas Administrative Code (via Cornell LII), 37 Tex. Admin. Code § 25.5Primary lawAn SR-22 filed as compliance must be maintained for two years from the most recent qualifying conviction; a lapse re-suspends driving privileges until a new certificate is filed.
- What is covered by a basic auto insurance policy? — Insurance Information InstituteConsumer guidanceDefines bodily injury and property damage liability, MedPay, PIP, uninsured/underinsured motorist, collision, comprehensive and glass coverage.
- Consumer insurance information — National Association of Insurance CommissionersConsumer guidancePlain-language guides from the body of state insurance regulators; links to every state's insurance department and complaint process.
- What if I can't find auto coverage? — Insurance Information InstituteConsumer guidanceHow the non-standard market and state assigned-risk plans insure drivers the voluntary market declines.
Practical guidance on this page is original editorial work. Cited sources support factual statements and do not endorse this site. Dollar ranges described as typical or illustrative are editorial estimates, not figures from these sources.
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