When I lend my car to friends or family, am I still covered?


28 Jun 2023

Understanding insurance coverage when lending your car to loved ones

Lending your car to friends or family members can be a common occurrence, whether it's for a short trip or an extended period. While it may seem like a friendly gesture, you might wonder about the insurance implications involved. What happens if an accident occurs while someone else is driving your car? Are you still covered under a road accident insurance claim? These are crucial questions to address to ensure that you are adequately protected. Let's delve into the topic of car insurance coverage when you lend your vehicle to friends or family. We will explore the factors that affect your coverage, the types of insurance policies that come into play, and some essential considerations to keep in mind. By understanding the nuances of car insurance in these situations, you can make informed decisions and prevent any potential financial or legal complications down the road.

Does our car accident claim cover friends and family members while they're driving?

Immediate family members such as a spouse, parents, or children residing in the same household, are typically covered while car accident claims. They are often considered "permissive users" of the insured vehicle, meaning they have your permission to drive the car and are covered under your policy while doing so. We extend coverage to occasional drivers who have your permission to use the vehicle. This could include close friends, relatives, or other individuals you trust. However, it's important to note that age restrictions and licensing requirements may still apply to family members driving your vehicle.

Some essential considerations to keep in mind

Lending your car to friends or family members is a common practice, but it's important to consider certain factors to protect yourself and your loved ones to ensure a smooth driving experience.

  • Lend your car to individuals you trust and who have a valid driver's license

  • Consider their driving history, responsible behaviour and ability to handle your vehicle safely

  • Always know the purpose of vehicle use before lending it to your family and friends

  • Discuss expectations regarding maintenance and cleanliness. Make sure that your car is returned in the same condition as when it was borrowed.

  • Remind your friends or family members to follow all traffic laws and parking regulations.

  • Ensure your vehicle is well-maintained and properly insured throughout the lending period.


Remember, while your car is covered for car accident insurance claim settlement for friends and family but it is important to follow the guidelines and procedures outlined in our policies. Don’t forget to connect with kotak general insurance for any specific guidance related to our policies. By taking these steps you can protect yourself and have peace of mind when lending your car to your loved ones.

Related Blogs

tips when riding through congested areas

monsoon car tips

8 Importance Terms In Motor Insurance

Kotak General Insurance - Logo
Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.