Does Insurance Cover Apply if a Friend Crashes Your Car?

Updated on 10-04-2025

One fine morning Mr. Bose called his close friend, Devyani and tells her that his car has gone for maintenance service, but he has some important errands line up for the day. Devyani happily obliged him when he asked to lend her car for the day. Hours later, he called her again to inform that he has met with an accident.

You can find yourself in Devyani’s shoes at some point in your life. You might be wondering if your car insurance coverage is still applicable when your friend crashes your car. At such a juncture, several questions can make you anxious.

• Can I claim the insurance on my damaged car?
• Is my friend covered under the insurance plan?
• Who will pay for the compensation amount against the damages?

Coverage for Accidents Caused by a Friend

You might be scratching your head on the above question. The good news is that most other drivers are covered under car insurance. ‘Permissive Drive’ rules are applicable in such instances. The driver should be driving your car with your consent, along with a valid driving license.

According to the Indian motor tariff, anyone can drive a car under the permitted laws. Hence, don’t worry before lending your car to your friends or family members. You can make a claim with your motor insurance company even when your friend crashes the car.

How Will the Damage Be Covered?

If your friend borrows your car and he/she meets with an accident damaging it, normally, your insurer will pay the compensation amount under ‘collision coverage’, and you will have to pay the deductible. If your friend is also injured while driving, your insurance may pay for the driver under ‘liability coverage’ unless he/she is excluded by the policy.

However, if the accident was caused by the negligence of any other driver on the road and you can prove it, the third-party insurer of that driver will pay the compensation to you and your insurance will remain unaffected.

Thus, there is no harm in lending your vehicle to your friends or family members as your car insurance will cover the damages under the collision coverage. However, always make sure the person has a valid driving license and he/she is driving under the permissible laws.

Steps to Take After a Friend Crashes Your Car

In the unfortunate event that your friend crashes your car, follow these steps to ensure a smooth claim process:

1. Ensure Safety: First and foremost, check for any injuries to your friends, passengers, or third parties involved. Seek medical assistance if necessary.
2. Document the Scene: Take photographs of the accident scene, including damages to all vehicles involved, licence plate, and any relevant road conditions or signs.
3. Exchange Information: Collect contact and insurance details from all parties involved in the accident.
4. File a Police Report: In India, it's mandatory to file a First Information Report (FIR) for accidents involving third-party injury or significant property damage. This report is crucial for the insurance claim process.
5. Notify Your Insurance Company: Inform your insurer about the accident as soon as possible. Provide them with all necessary documentation and cooperate fully during the investigation.
6. Avoid Admitting Fault: Tell your friend not to admit fault at the scene. After a thorough investigation, the authorities and insurance companies should determine the fault.

Documents Required to File a Car Insurance Claim

To expedite the claim process, ensure you have the following documents ready:

1. Duly Filled Claim Form: Obtain this from your insurance company or download it from their website.
2. Copy of the Vehicle's Registration Certificate (RC): This verifies ownership and details of the vehicle.
3. Driver's Licence: A copy of your friend's valid driving licence.
4. First Information Report (FIR): Especially necessary in cases involving third-party injury or significant damages to their property.
5. Insurance Policy Document: A copy of your car insurance policy.
6. Repair Estimates: Obtain a repair estimate from an authorised garage.
7. Medical Reports: If there were any injuries, medical reports and bills might be required.

Having these documents organised and readily available can significantly streamline the claim settlement process.

FAQs

1. Will my insurance premium increase if my friend crashes my car?

Yes, filing a claim can lead to an increase in your insurance premium upon renewal. Additionally, you may lose any accumulated No Claim Bonus.

1. Is my friend liable to pay for the damages?

Legally, as the car owner, you are responsible for damages. However, you can have a personal agreement with your friend regarding reimbursement for deductibles or increased premiums.

1. What if my friend was driving under the influence?

If your friend was intoxicated during the accident, the insurance company is likely to reject the claim due to a violation of policy terms.

1. Does insurance cover apply if my friend is a learner driver?

If your friend holds a valid learner's licence and adheres to the conditions (such as being accompanied by a licenced driver), the insurance should cover the accident. However, it's essential to verify this with your insurer.

1. Can I exclude certain drivers from my insurance policy?

Some insurance policies allow you to exclude a specific person or persons from the insurance. Consult the insurer and communicate your needs to learn more about such details. 

Conclusion

Letting a friend drive your car can be generous, but you should be aware of how it affects your insurance coverage. Ensure that your friend is a responsible driver with a valid licence and follows all traffic laws. Learn all about your policy's terms and conditions while buying car insurance online to avoid any surprises in the event of an accident. Open communication with your insurer can provide clarity and ensure that you're adequately protected, regardless of who is behind the wheel.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.