What Happens If You Crash Someone Else’s Car?
Senior Multi-Line Claims Adjuster. For the past 15 years, I’ve been the person on the other end of the phone when this exact incident happens. I’ve navigated thousands of complex claims involving borrowed vehicles, determining liability and coordinating payments between multiple insurance policies. My job is to untangle the financial web of an accident, and I’m here to explain exactly how it works.
It’s a scenario that plays out every day: you borrow a friend’s truck to move, take your parents’ SUV for an errand, or drive a roommate’s car to the store. Then, you hear it—the sickening crunch of metal. Your heart sinks. In the confusion and stress that follows, one question screams louder than any other: Who pays for this?
The answer is more complex than you might think, but it’s governed by a single, fundamental principle of auto insurance in the United States. This guide will walk you through that principle, the exact steps to take after the crash, and how the financial responsibility is divided.
Primary vs. Secondary Coverage: Untangling the Insurance Web
This “insurance follows the car” rule means that the insurance policy on the vehicle you were driving is considered the **primary insurance**. Your personal car insurance, if you have it, acts as **secondary insurance**. Let’s break down what that means.
Primary Coverage: The Car Owner’s Policy Takes the First Hit
When you crash someone else’s car (with their permission), their insurance policy is the first one that must respond to the claim. This is because their insurer accepted the risk of that specific vehicle.
- Damage to Their Car: The owner’s Collision coverage will pay to repair their vehicle. The owner is responsible for paying their collision deductible, even though you were the one driving.
- Damage to Other People’s Property: The owner’s Property Damage Liability coverage pays for the repairs to any other cars or property you damaged.
- Injuries to Other People: The owner’s Bodily Injury Liability coverage pays for the medical expenses and related costs for anyone you injured in the accident.
Every car on the road is required to have at least a baseline of liability coverage, which is a fundamental reason **you have to have insurance to register a car** in nearly every state.
Secondary Coverage: When Your Insurance Policy Steps In
So if the car’s insurance covers everything, where do you come in? Your personal auto insurance acts as a crucial safety net in two key situations:
- When Damages Exceed the Owner’s Limits: Imagine the car owner has $50,000 in property damage liability, but the accident causes $75,000 worth of damage. Their policy will pay the first $50,000. After that, your insurance company would be called upon to pay the remaining $25,000 from your own liability coverage. Without this secondary coverage, you would be personally sued for the difference.
- When the Owner Lacks Certain Coverages: What if the owner has an older car and only carries liability insurance to save money? If you crash their car, their policy will pay for the other person’s damages, but there is NO coverage to fix their car. In this case, if you have collision coverage on your own policy, it might extend to a vehicle you are temporarily driving and cover the repairs.
The Critical First Steps: What to Do Immediately After the Crash
Your actions in the minutes following an accident are crucial for a smooth claims process. Stay as calm as possible and follow this checklist.
- Check for Injuries & Secure the Scene. Your first priority is health and safety. Check on all parties involved. If anyone is injured, call 911 immediately. If the accident is minor, move the vehicles out of traffic if it is safe to do so.
- Call the Police. A police report is an essential, impartial record of the accident. It documents the conditions, parties involved, and often includes a preliminary assessment of fault. Insurers rely heavily on these reports.
- Notify the Car’s Owner. As soon as it is safe, you need to call the person whose car you were driving. They need to know what happened and will need to get their insurance information ready.
- Exchange Information. Get the other driver’s name, address, phone number, and their insurance company/policy number. Provide them with the insurance information for the car you are driving (the owner’s info), as well as your own name and contact details.
- Document Everything. Use your phone. Take photos and videos of the accident scene from all angles, the damage to all vehicles, skid marks, traffic signals, and any relevant road conditions.
- Do NOT Admit Fault. Even if you think you were to blame, do not admit fault to the other driver or the police. Stick to the objective facts of what happened. Let the insurance adjusters and the police report determine legal liability. ol>
The “Permissive Use” Clause is Essential
This entire process hinges on one critical fact: you had the owner’s permission to be driving their car. If you took the car without their knowledge or were explicitly told not to drive it, the situation changes drastically. This is called “non-permissive use,” and insurance companies can treat it similarly to theft. Both the owner’s policy and your policy may deny the claim entirely, leaving you personally responsible for 100% of the damages. This is a complex area, similar to the questions that arise around **what happens if a stolen car is found after an insurance payout**.
Be a Prepared Driver, No Matter the Vehicle
Accidents happen. Being prepared with the right equipment can make a stressful situation more manageable and provide crucial information for your claim.
Portable Dash Cam
Why it helps: A dash cam is your unbiased witness. A portable model can be easily moved between your car and any vehicle you borrow, providing a clear record of any incident and protecting you from fraudulent claims.
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Roadside Emergency Kit
Why it helps: Whether it’s your car or a friend’s, having a kit with jumper cables, reflective triangles, and basic tools can help you safely manage the scene after an accident or during a breakdown.
Check Price on AmazonFrequently Asked Questions (FAQ)
Am I responsible for paying my friend’s deductible?
Legally, the policyholder (the car owner) is responsible for paying their deductible to the body shop. Morally and ethically, since you caused the damage, you should offer to pay it. It’s best to have this discussion with the owner upfront to maintain your relationship.
Will my insurance rates go up if I crash someone else’s car?
If the accident is your fault, it will be listed on your driving record. If the owner’s insurance covers all the damages, your rates might not be immediately affected. However, if their limits are exceeded and your policy has to pay, you can almost certainly expect a rate increase at your next renewal.
What if the owner has a financed car?
If the car is financed, the owner is almost certainly required by their lender to carry both collision and comprehensive coverage. This is good news, as it ensures there is coverage to repair the vehicle. It’s an important distinction from the question of whether **you can get liability insurance on a financed car**, which generally isn’t possible until the loan is paid off.