If Your Friend Crashes Your Car, What Happens to Your Car Insurance?

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You invest a big chunk of your savings in purchasing a car. It takes a lot of thinking and research when you decide to purchase a car. Depending on your interest, you go through different cars according to your budget and need. Once you spot the one that suits your budget and need, you make the purchase. Along with it, you have to purchase a third-party liability car insurance policy that is mandatory as per the Motor Vehicle Act, 1988.

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      The third-party liability insurance only provides cover for the damage or loss of third-party and it is recommended to purchase the comprehensive plan that provides an overall coverage to the policyholder. However, there is confusion related to the coverage among the policyholders. What if a friend of the policyholder is driving the car and meets an accident resulting in damage?

      Does the insurance company provide cover if someone else other than you is driving the car?

      Who Is Covered?

      Well, it can be confusing that who else other than you is covered under the car insurance plan while driving your car. Although the coverage and benefits of an insurance policy can vary from one insurer to another.

      However, you purchase a car for your utilization as well as your family’s but there are times when a childhood friend of yours would ask you to lend your car to him. That’s where you hold on for a second and think if he might crash your car somewhere then there will be an unwanted financial burden on you, so if you should lend your car to that friend of yours or not.

      But as a thumb rule, every person who drives your car will be provided cover by your insurance company. The insurance company will exclusively mention someone who is excluded from the coverage and that particular person will not be provided coverage in case of an accident while driving your car.

      Hence, you can lend your car to your friends and family members. This scenario is termed “Permissive Use”. Permissive use means when you let any other person drive your car and the insurance company will cover them as well. Certain factors will impact the coverage norms. So let us tell you about that also.

      Factors That Can Affect Coverage Norms

      Whether you have third-party liability insurance or a comprehensive insurance policy, if you have given your car to any other person for permissive use then the insurance company will cover it. But there are certain factors that might affect the coverage norms and they are as follows:

      • The person you lend your car to must be within the age limit as mentioned in the insurance policy.
      • Before lending your car to anyone else, make sure that they have a valid driving license. In case they do not have a valid license, then the insurance company may not provide cover.
      • Also, If the person does not have a valid license then he/she is not eligible to drive any vehicle. Driving without a valid license is a punishable offense under the Motor Vehicle Act, 1988.
      • Make sure that the person is not under the influence of alcohol or drugs. This might increase the chances of an accident and you will not be provided cover for any damage or loss.
      • Driving under the influence of alcohol or drugs is a punishable offense under the Motor Vehicle Act, 1988.

      How Will The Damage Be Covered?

      Purchasing a car insurance policy is a smart way to dodge any unforeseen incident resulting in a financial burden. It is because the insurance company provides financial aid in case of an accident resulting in damage of your car and even bodily injury that the driver or third party might incur.

      But in case you have given your car to any other person for permissive use then how would your insurance company will provide cover for any kind of damage or bodily injury?

      The insurance company will provide coverage to the policyholder under the below-mentioned circumstances.

      • If you have lent your car to anyone else and they meet an accident that resulted in minor damage then in most cases if the conditions are met, the insurance company will provide cover for it. The company will cover you, the driver as well as the car.
      • The insurance company will not provide cover if anyone else drives your car without your permission.
      • If your friend or family member crashes your car that resulted in bodily injury to the people in the car and causes serious damage to the car then your insurer will only provide cover to the damage caused to the property by your car. The company will not provide cover for third-party injuries.
      • The Diver at-fault cover will only provide cover for the bodily injury to the driver and others sitting in the car.

      So if you have lent your car to any other family member or friend of yours, your car insurance policy will provide cover according to the terms and conditions.


      It is totally your choice to lend your car to anyone else but It would be wise if you checked that the person you are lending your car has a valid driving license and make sure that he/she would not drive the car under the influence of alcohol or drugs. You can purchase the car insurance policy online where you can learn about every little information related to your policy. You can also contact your insurance provider’s customer service executive to learn about all these things.

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