Who Pays If a Friend Crashes My Car?

Have you ever lent your car to a friend, only to find out later that they were involved in an accident? Along with worrying about your friend, you may be wondering who will pay for the damage to your car.

The answer depends on who caused the accident, your car insurance policy and whether your friend meets the policy conditions. If your friend was driving with your permission, your car insurance may still cover an eligible claim, but a compulsory excess could apply.

Here is what you need to know before making a claim.

Who Pays If My Friend Crashes My Car?

If your friend was driving your car with your permission and got into an accident, who pays depends on the circumstances and the type of insurance you have.

Situation	Who may pay?
Your friend caused the accident and your car was damaged	Your comprehensive insurance may cover the approved repair costs, subject to your policy and any applicable excess.
Your friend was not at fault	You may be able to claim against the at-fault driver’s insurer, depending on the circumstances and claims process.
Your friend is not named in your policy	A compulsory excess of RM400 may apply to an own-damage claim, subject to the policy terms.
Your friend is under 21 or holds a P or L licence	The RM400 compulsory excess may still apply, even if the driver is named or you have All Drivers cover.
Your car has third-party-only insurance	Damage to your own car caused by your friend would generally not be covered by your policy.

Read BJAK’s guide to All Drivers Car Insurance to understand how driver coverage can affect a claim.

1. If Your Friend Caused the Accident

If your friend was driving with your permission and caused the accident, you may be able to make an Own Damage claim under your comprehensive car insurance policy.

However, there are a few things to consider:

• Repair costs: Your insurer may pay approved repair costs after applying any relevant excess and policy conditions.
• Compulsory excess: If your friend is not named in your policy, a compulsory excess of RM400 may apply. Other excesses may also apply under your policy.
• No Claim Discount (NCD): Making an own-damage claim will generally affect your NCD, subject to the type of claim and policy terms.

For example, if the approved repair cost is RM5,000 and a RM400 compulsory excess applies, you may need to pay RM400 first, while the insurer covers the remaining RM4,600. This is only an illustration. The actual amount depends on the approved claim and your policy terms.

Learn more about comprehensive car insurance before choosing your coverage.

2. If Your Friend Was Not at Fault

If another driver caused the accident, you may be able to claim against that driver’s insurer.

Depending on the circumstances, you can also ask your insurer about an Own Damage Knock-for-Knock (OD-KFK) claim. If the claim meets the relevant conditions, your NCD is generally not affected.

However, a claim is not automatically guaranteed. The outcome depends on the accident evidence, police report, determination of fault and the applicable claims requirements.

For more information, refer to Bank Negara Malaysia’s motor insurance and takaful FAQ.

3. Does Insurance Cover a Friend Driving My Car?

In some circumstances, yes. You can allow another person to drive your car with your permission, provided they meet your policy conditions and hold a valid driving licence for the relevant vehicle class.

However, there is a difference between Named Driver and All Drivers coverage.

Type of coverage	What it means	What to know
Named Driver	Specific drivers are listed in the policy	A named friend must still meet the policy conditions, and other applicable excesses may apply.
All Drivers	Coverage applies to permitted drivers, subject to the policy terms	It may waive the compulsory excess for an unnamed driver if the waiver is included in the policy.
No additional driver cover	Your friend is not named in the policy	A RM400 compulsory excess may apply if you make an own-damage claim.

Important: All Drivers coverage does not necessarily remove every type of excess. For example, the compulsory excess for drivers under 21 or those holding a P or L licence may still apply.

Check your policy schedule and the insurer’s Product Disclosure Sheet to confirm what is included. You can also read BJAK’s guide to the difference between All Drivers and Named Driver coverage.

4. What Should You Do If Your Friend Crashes Your Car?

If your friend is involved in an accident while driving your car, follow these steps:

1. Make sure everyone is safe. Get emergency assistance if anyone is injured.
2. Make a police report. Follow the applicable accident-reporting requirements and keep a copy of the report.
3. Collect evidence. Take photos and record the vehicle registration numbers, driver details, accident location and relevant circumstances.
4. Contact your insurer. Explain that your friend was driving with your permission and ask about the claims process.
5. Check your excess and driver coverage. Confirm whether a compulsory or other excess applies before proceeding with the claim.

Avoid admitting fault or agreeing to compensation before you understand the circumstances and claims process.

Conclusion

If your friend crashes your car, your insurance may cover eligible costs, but an excess may apply and your NCD could be affected.

Before lending your car, check whether your policy includes Named Driver or All Drivers coverage. Understanding the excess conditions can also help you avoid unexpected costs if you need to make a claim.

For more information about your options, visit the BJAK Car Insurance Learning Hub.