Can You Drive Your Parents’ Car With Their Insurance in Texas?
Your parents’ insurance will typically cover you when you drive their car, but it won’t if you use the vehicle for an excluded purpose, like food delivery.
Michelle Lambright Black is a credit expert, freelance writer, and founder of CreditWriter.com. She has over 20 years of experience writing and speaking about credit and money, and focuses on helping families and small business owners make smart, informed decisions about their credit, money, and financial products (including insurance). Michelle's work has appeared in publications such as Yahoo! Finance, Reader's Digest, Parents, FICO, Forbes, Bankrate, The Seattle Times, MarketWatch, BuySide from Wall Street Journal, USA Today, and more. She's also a three-time finalist for the best personal finance freelancer award from the Plutus Foundation. When she isn't writing or speaking about credit and money, Michelle loves to travel with her family or read a good book. You can connect with Michelle on Instagram or Twitter.
Background working with banks and insurance companies
Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.
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In Texas, you can drive your parents’ car and their auto insurance policy will typically cover you in the event of an accident. But your parents’ auto insurance company may expect you to follow certain rules to be eligible for coverage.[1]
Read on to understand how insurance works when you borrow a parent’s vehicle in Texas.
Can you drive your parents’ car in Texas?
Texas is a permissive driver state. This means that the parent’s auto insurance follows the car— not the driver.
In Texas, state law prohibits an insurance company from covering only named drivers in an accident. So, if a parent gives you permission to drive their vehicle and you cause an accident, their insurance company should be responsible for paying any covered damages.
Keep in mind that if you drive your parents’ car without permission, you could face serious consequences. Both your insurance company and law enforcement officials may consider the situation to be theft.
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Secondary driver vs. primary driver
Both the car and the driver affect Texas insurance rates. A primary driver is who drives the car the most, while a secondary driver uses the car occasionally. For instance, if a teenager is the main driver of a vehicle, insurers base rates on that driver and car. But if you drive different family cars, insurers usually base your premium on the vehicle with the highest rate.
What is permissive use?
Permissive use is an insurance term that means the owner of a vehicle gave another person permission to drive their car. If someone else is driving your car when an accident happens, your insurance company will want to confirm that the person driving your vehicle didn’t simply take it without asking first.[2]
In general, permissive use falls into two categories:
Listed drivers: If you’re a listed or named driver on your parents’ car insurance policy, your parents should be able to file a claim without much trouble if you get into an accident.
Unlisted drivers: As an unlisted driver, the claims process could be more challenging if you get into an accident in your parents’ car. But if your family member gave you permission to drive their vehicle, the insurance company may still cover the accident — especially since Texas is a permissive driver state.
Exclusions from insurance
Even though Texas is a permissive driver state, your insurance company might try to deny coverage if you loan your car to someone else and they have an accident. Here are a few examples of when you won’t have coverage:
Driving for business purposes: Many car insurance companies require you to have separate commercial car insurance coverage if you plan on driving a vehicle for commercial purposes.
Inexperienced drivers: If a young family member (especially one who lives in the same household) might drive your car on a regular basis, it’s probably a good idea to add them to your insurance policy. Some insurance companies might try to deny coverage for inexperienced drivers after an accident even if you gave that person permission to use your vehicle.
Intentional damage: In addition, your parents’ insurance may not cover you if you cause intentional damage or participate in illegal activities, like racing.
What happens if you get into an accident
When you’re driving a vehicle in Texas, state law requires liability insurance. Texas is an at-fault insurance state. So, if you’re in an accident (or if someone else is in a car accident while driving your vehicle), the at-fault driver is responsible for paying for damages.
If you cause a crash in a borrowed car, the owner’s insurance policy may provide coverage as long as you have permission to drive the vehicle and aren’t driving it for an excluded purpose. Non-owner car insurance could be a good idea as well if you’re looking for extra loss protection and don’t own a vehicle.
For example: Let’s assume you borrow your parents’ car, and you get into an accident while driving to the grocery store. But you’re a named driver on the car insurance policy. In this scenario, it’s likely your parents’ insurance company would cover the incident.
In the event your parents’ insurance company approves the claim, their liability insurance policy should cover the property damages and injuries of the other driver up to the policy limits. If your parents have collision insurance — called full-coverage car insurance when paired with liability coverage — that coverage would pay for repairs and replacements for your parents’ vehicle.
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Can driving on your parents’ policy affect their rates?
Borrowing your parents’ car on occasion might not affect their insurance premiums. But if you share a permanent residence and plan to use your parents’ vehicle on a regular basis, it’s probably a good idea to be a named driver on the same insurance policy.
In general, car insurance for multiple drivers is more expensive than a policy for a single driver. But you might also save money if you compare the insurance rates for two individual policies to the typical premiums for a shared policy. And you could qualify for multi-car discounts or bundle with home insurance to save even more.
It’s also worth noting that your age can also have a big effect on your parents’ insurance premium if you plan to share a car insurance policy. Below is a look at the cost of adding a teen driver versus an experienced adult driver to your car insurance.
Insurance Company
▲▼
Average Quote: Adults Only
▲▼
Average Quote: With Teen Driver
▲▼
State Farm
$37
$85
GEICO
$41
$90
Allstate
$53
$124
Mile Auto
$54
$134
Hugo
$57
$136
USAA
$67
$151
Nationwide
$84
$194
Safeco
$84
$199
Mercury
$85
$205
Progressive
$98
$233
Dairyland
$104
$232
Chubb
$113
$274
Clearcover
$113
$267
National General
$120
$296
Elephant
$129
$291
21st Century
$131
$297
Liberty Mutual
$131
$299
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
Perhaps the biggest factor that could affect your parents’ insurance rates if you decide to share a policy is your driving record. Insurance rates may increase 26% or more after an at-fault accident due to the increased risk. So, it’s important to compare your options and search for the cheapest rates for drivers with at-fault accidents if you find yourself in this situation.[3]
Driving on your parents’ policy in Texas FAQs
Below is some helpful information about driving on your parents’ car insurance in Texas.
Can I drive my dad’s car with his insurance in Texas?
Your dad’s insurance should cover you as a driver (up to the policy limits) if you cause an accident while using the vehicle. But it’s a good idea to make sure you have permission to drive your parents’ vehicle before you get behind the wheel.
What happens if someone who isn’t on your insurance crashes your car in Texas?
In general, your insurance should cover other drivers who use your vehicle in the event of an accident. A few exceptions to this rule may be if the driver is a named excluded driver on your insurance policy or if the driver uses your car for excluded purposes under your insurance policy, such as driving for business purposes.
Does insurance follow the vehicle or the driver in Texas?
In Texas, auto insurance typically follows the car, not the driver. But if the driver failed to get your permission before driving your vehicle, their car insurance policy might need to provide coverage for liability costs — including injuries and damages.
Do I need to be listed as a driver on my dad’s insurance policy in Texas?
If you live in the same household and plan to drive your parents’ car on a regular basis, you may want to talk to them about adding you as a named driver on their insurance policy. But Texas is a permissive driver state. And Texas law prohibits an insurance company from covering only named drivers in an accident.
Michelle Lambright Black is a credit expert, freelance writer, and founder of CreditWriter.com. She has over 20 years of experience writing and speaking about credit and money, and focuses on helping families and small business owners make smart, informed decisions about their credit, money, and financial products (including insurance). Michelle's work has appeared in publications such as Yahoo! Finance, Reader's Digest, Parents, FICO, Forbes, Bankrate, The Seattle Times, MarketWatch, BuySide from Wall Street Journal, USA Today, and more. She's also a three-time finalist for the best personal finance freelancer award from the Plutus Foundation. When she isn't writing or speaking about credit and money, Michelle loves to travel with her family or read a good book. You can connect with Michelle on Instagram or Twitter.
Background working with banks and insurance companies
Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.
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