Mark Anderson | February 13, 2026 | Car Accidents
It is common to let a friend or family member borrow your car. What happens if they are not listed on your insurance policy, though? Many drivers in Texas are unsure how this works. The answer depends on your policy and the situation.
In many cases, insurance follows the car, not the driver. This means your auto insurance may still apply if someone else drives your vehicle with your permission. However, there are important limits and risks you should understand before handing over your keys.
How Car Insurance Usually Works in Texas
In Texas, drivers must carry minimum liability coverage. This coverage pays for injuries or property damage you cause to others. When someone borrows your car with permission, your insurance may act as the primary coverage if there is a crash.
Texas minimum coverage includes:
- $30,000 for injury to one person
- $60,000 total for injury per accident
- $25,000 for property damage
These limits may not be enough for serious crashes. That is why it is important to know how coverage applies before someone else drives your car.
What Is Permissive Use?
Permissive use means you gave someone permission to drive your vehicle. Most Texas insurance policies include coverage for permissive drivers. This often applies to occasional use, such as a friend borrowing your car for a short trip.
However, there are exceptions. Your policy may not cover someone who:
- Lives in your household but is not listed on the policy
- Is specifically excluded from coverage
- Took the car without permission
- Was using the car for business purposes without proper coverage
You should review your policy carefully to understand who is covered.
What Happens if There Is an Accident?
If a permissive driver causes a crash, your insurance will likely be used first. This means your liability coverage would pay for the other party’s damages up to your policy limits.
If the damages exceed your limits, the driver’s personal insurance may act as secondary coverage. In some cases, you could also be personally responsible for any remaining balance.
Even if you were not driving, the accident could affect your insurance rates. This is because the claim is made against your policy.
Can You Be Sued if Someone Else Crashes Your Car?
Yes, it is possible. As the vehicle owner, you may be named in a lawsuit after a crash. Texas law allows injured parties to pursue compensation from all responsible parties.
You may face claims based on:
- Negligent entrustment, if you allowed someone unsafe to drive
- Personal exposure if damages exceed your policy limits, meaning you could be responsible for amounts not covered by insurance
If you knew the driver had a history of reckless driving or did not have a valid license, you could face greater legal risk.
What About Family Members?
If someone lives in your home and regularly drives your car, most insurance companies expect them to be listed on your policy. Failing to list a household driver could lead to denied claims.
Teen drivers are a common example. When a teen becomes licensed, they should usually be added to the policy. Not doing so can create serious coverage issues. Each insurance company has its own rules, so it is important to check with your provider.
What if the Driver Does Not Have Insurance Coverage?
If the person borrowing your car does not have their own insurance, your policy will likely be the only coverage available. This increases your financial risk in the event of a serious crash.
If the damages are more serious than your policy limits, you could be responsible for the difference. This could lead to personal lawsuits or collection efforts. Because of this risk, it is wise to be cautious about who you allow to drive your vehicle.
When Insurance May Deny Coverage
Insurance companies may deny coverage in certain situations.
Common reasons include:
- The driver was excluded from the policy.
- The vehicle was used for commercial purposes.
- The driver was intoxicated.
- The use was outside the scope of permission.
If coverage is denied, the driver and possibly the vehicle owner may have to pay out of pocket.
Contact the Austin Car Accident Lawyers at Anderson Injury Lawyers for Help Today
Letting someone drive your car may seem simple, but the legal and insurance issues can be complex. If you were injured in a crash involving a borrowed vehicle, you may have questions about who is responsible and how insurance applies.
The Austin car accident attorneys at Anderson Injury Lawyers can review your case, explain your options, and help you pursue fair compensation. Contact our law office today to discuss your situation. We proudly serve Tarrant County, Dallas County, and throughout Texas.
Anderson Injury Lawyers – Fort Worth Office
1310 W El Paso St, Fort Worth, TX 76102
(817) 294-1900
Find us with our GeoCoordinates: 32.74621197527774, -97.33552733508391
Anderson Injury Lawyers – Fort Worth Office (Secondary)
6618 Fossil Bluff Dr # 108, Fort Worth, TX 76137
(817) 631-4113
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Anderson Injury Lawyers – Dallas Office
408 W Eighth St Suite 202, Dallas, TX 75208
(214) 327-8000
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Anderson Injury Lawyers – Austin Office
811 Nueces Street 6301, Austin TX, 78701
(512) 399-5000
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About the Author
Mark A. Anderson is the founder of Anderson Injury Lawyers and a Board Certified Personal Injury Trial Lawyer—an honor held by only a small percentage of Texas attorneys. He earned his law degree from Baylor University School of Law and has spent more than 20 years helping injury victims across Dallas, Fort Worth and Austin. Mark handles cases involving car accidents, truck accidents, product liability, wrongful death, catastrophic injuries, and more. Click here to view some of the successful case results Mark has achieved for his clients.
Location: Dallas, Fort Worth, and Austin, Texas
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