If I Let Someone Borrow My Car, What Happens to My Insurance in Missouri & Arkansas?
Letting someone borrow your car may seem harmless — but it can create serious insurance consequences for drivers in Missouri and Arkansas. One of the biggest misconceptions in auto insurance is the belief that coverage follows the driver. In most cases, auto insurance follows the vehicle, not the person behind the wheel.
Before handing over your keys, it’s important to understand how your policy actually works.
Does Insurance Follow the Car or the Driver?
In most situations, your auto insurance policy is primary coverage if someone else drives your vehicle with your permission.
If a friend, family member, or coworker causes an accident while driving your car:
- Your liability limits apply first
- Your deductible applies for damage to your vehicle
- Your claims history may be affected
- Your future premiums could increase
Even if you were not in the car, the claim typically goes against your policy.
What Is Permissive Use?
Most policies include what’s called permissive use, meaning occasional drivers may be covered if you give them permission.
However, coverage can become complicated if:
- The driver lives in your household and is not listed
- The person regularly drives your vehicle
- The driver has a suspended license
- The driver has a poor driving record
- The vehicle is used for excluded business purposes
Failure to properly disclose household drivers can result in reduced coverage — or even a denied claim.
What If Damages Exceed Your Policy Limits?
If the borrower causes significant injuries or property damage, losses can exceed minimum liability limits. In that case:
- You may be personally responsible for the remaining amount
- Your assets could be exposed
- Lawsuits may follow
Minimum liability limits in Missouri and Arkansas may not be enough to protect you from a serious accident.
What About Physical Damage to Your Car?
If your vehicle is damaged while someone else is driving:
- You are responsible for your deductible
- Repeated claims can raise your premiums
- Your insurer may review or re-rate your policy
Even if the borrower offers to “pay you back,” the insurance claim still impacts your policy record.
Questions to Ask Before Lending Your Car
Before letting someone borrow your vehicle, consider:
- Are they listed on my policy if required?
- Do they have a valid license?
- Do they carry their own insurance?
- Am I comfortable with the financial risk?
If someone regularly drives your vehicle, they may need to be formally added to your policy.
Protect Yourself Before Handing Over the Keys
For drivers in Missouri and Arkansas, understanding who is covered under your auto policy is critical. A quick review can clarify:
- How permissive use applies
- Whether household members must be listed
- If exclusions exist
- Whether your liability limits are adequate
Letting someone borrow your car is ultimately letting them borrow your insurance. Taking a few minutes to review your coverage now can help you avoid major financial surprises later. 🚗