Can You Be Covered by Insurance Without Your Own Policy?
Insurance Coverage Isn’t Always What You Think
Many people assume that if they don’t have their own car insurance policy, they won’t be covered if they’re in an accident. That belief often stops people from seeking help when they really need it. But here’s the truth: in many cases, auto insurance follows the vehicle, not just the driver.
If you’re driving someone else’s car with permission and get into an accident, there may still be coverage available — even if you personally don’t have a policy. Unfortunately, insurance companies don’t always make this clear, and sometimes they outright deny coverage to people who are entitled to it.
Let’s break down how this works, why denials happen, and what you can do if you find yourself in this situation.
What Is “Permissive Use” in Auto Insurance?
Most auto insurance policies cover more than just the policyholder. When you drive a friend or family member’s car with their permission, you are typically considered a “permissive user.” This means the insurance on the car should extend to you in the event of an accident.
However, insurance companies sometimes deny these claims, arguing:
The driver was not explicitly listed on the policy.
The driver’s use of the car was outside the scope of permission.
The insurer believes an exclusion applies.
In many cases, these denials are not legally justified — but they can still leave people in a stressful position.
A Real-World Example: How We Helped a Client in This Exact Situation
One of my clients was driving his friend’s vehicle with permission when he was involved in an accident. The other driver filed a lawsuit against him personally, leaving him exposed to significant financial risk.
Here’s what happened next:
The insurance company (State Farm) denied coverage. They claimed my client wasn’t entitled to protection under the policy, even though he was clearly driving with his friend’s permission.
We challenged the denial. By carefully reviewing the policy language and Michigan law, we argued that State Farm was obligated to provide coverage.
We achieved a favorable outcome. Within 90 days, we resolved the case against my client and secured the protection he was entitled to all along.
This case is a perfect example of why you should never take an insurance company’s denial at face value.
Why Insurance Companies Deny Coverage
Insurance companies are profit-driven businesses. The less they pay in claims, the higher their profit margins. That’s why denials and delays are common. Some of the most frequent reasons given for denying coverage include:
Driver not listed on the policy
“Excess use” arguments (claiming the driver didn’t have permission or exceeded it)
Policy exclusions buried in fine print
Technical errors (like paperwork mistakes or late premium payments)
The good news is that many of these denials can be overturned with the right legal help.
What to Do If Your Claim Is Denied
If you’ve been told you aren’t covered after an accident, don’t panic — and don’t assume the insurance company is right. Here are the steps you should take:
Request a denial letter in writing. Insurance companies must explain why they’re denying coverage.
Gather documentation. Collect the police report, accident details, and any communication with the insurance company.
Don’t talk to the other driver’s insurance without representation. Anything you say can be used against you.
Contact an attorney quickly. Insurance disputes often involve strict deadlines. An experienced lawyer can review the policy and fight for your rights.
Frequently Asked Questions
Do I need insurance to drive someone else’s car?
Not always. If you’re driving with permission, the car owner’s insurance may cover you. But if you drive without permission, coverage is unlikely.
Does car insurance always follow the car, not the driver?
In most cases, yes — but there are exceptions depending on the policy language and state laws.
What if I caused the accident?
Liability insurance may still protect you, but if damages exceed policy limits, you could be personally responsible. That’s why it’s so important to understand coverage before you get behind the wheel.
Don’t Let Insurance Denials Stop You from Getting Help
Just because an insurance company says you’re not covered doesn’t mean they’re right. If you were driving with permission, you may still be entitled to protection under the policy.
At Measel Law, we fight back when insurance companies deny valid claims. We’ve helped clients in situations just like yours, and we can help you too.
