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Good To Do Auto Insurance Argument no . a few: If a close friend crashes my very own car, their insurance will cover the damage That is a complete fantasy because car insurance policies cover vehicles instead of drivers. Not only will your current friend's insurance policies not deal with the damage, there's also a good chance that your personal insurance company probably cover destruction and you will need to pay for it out of your own wallet. Most insurance policies usually are either for a ‘Nominated Driver' or for ‘Multiple Drivers'. If you are the just nominated operater on the insurance plan then your claim will be refused. Some many driver guidelines only deal with the plan holder and their spouse, which means this might also possibly be insufficient to hide your good friend's accident in the vehicle. If your policy can cover your current friend and the claim is prosperous then you can be expecting your insurance premium to move up. You will also get rid of your no-claim bonus if you find one.