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In many jurisdictions it is compulsory to have vehicle insurance before using or keeping a motor vehicle on public roads. Most jurisdictions relate insurance to both the car and the driver, however the degree of each varies greatly.
When your friend crashes your car: The rules of auto liability. By Insure.com - Last updated: Jun. If you drive your car and cause an accident, your car insurance will pay for the damages you cause, as defined in your policy. If your friend drives and crashes your car, you may assume that he -- and his car insurance -- will pay for damages. In fact, you are on the hook.