What Happens If an Unlicensed Driver Crashes Your Car? 2025

Accidents Involving Unlicensed Drivers

According to data from AAA, there are an estimated seven million unlicensed drivers on U.S. roads. Although approximately 3% of all drivers are unlicensed, they account for a far higher share of accidents and fatalities. Nearly one in five fatal accidents involve an unlicensed driver. This significantly increases the risk to anyone on the road.

Unlicensed drivers may be too young to obtain a license or have not yet passed the licensing test. Inexperience, immaturity and poor decision-making lead to a disproportionate share of crashes and fatalities in this demographic. Unlicensed teen drivers are more likely to engage in reckless, dangerous behavior than their licensed peers or older drivers. Even drivers with a permit may still be unable to drive a vehicle on their own.

Some immigrants who lack the required documentation to obtain a U.S. driver's license also drive without a valid license. Although they may be experienced drivers and licensed in their home country, they may be unfamiliar with U.S. driving regulations and requirements and pose a danger to other drivers.

Another category of unlicensed drivers is those who have lost their license or had their license suspended because of traffic violations, drunk driving convictions or certain medical conditions. An average of 11,000 people die each year in drunk-driving crashes, many involving a driver with prior DUI offenses. Letting someone with a suspended license drive your car can not only lead to accidents but can also expose you to lawsuits and potential criminal charges.

What to Do If An Unlicensed Driver Hits You

If you're involved in a car accident with an unlicensed (and uninsured) driver, you should report to your car insurer right away. For drivers in no-fault states like Michigan, it doesn't matter whether the other driver is licensed or insured because every driver recovers from their own insurer. In other states, drivers involved in an accident with an unlicensed, uninsured driver may be able to recover compensation under their uninsured/underinsured (UM/UIM coverage).

The average car accident settlement includes compensation for medical expenses, lost wages, vehicle damage and repairs. It may also include reimbursement for a rental car. You should discuss your coverage with your insurer. You may also want to consult a personal injury attorney to explore pursuing a lawsuit against the driver or other responsible party.

What Happens If You Let an Unlicensed Driver Use Your Car

Most insurance policies provide coverage if you allow another person to drive your car. (This is called "permissive use.") Will insurance cover an unlicensed driver? In most cases, no. If you allow an unlicensed driver to use your vehicle, you may be personally liable for any damage they cause. This can include damage to your car, damage to other people's property and compensation for personal injuries.

Can I get in trouble for letting an unlicensed driver drive my car? Yes, allowing an unlicensed driver to operate your vehicle is often illegal and can carry serious consequences. You may even face criminal charges.

Many people used to leave their cars running when they went into a store or gas station. Others left their keys in the vehicle while it was parked in their driveway or hid them in the wheel well. These behaviors increase the risk that your car will be used by an unauthorized (and potentially unlicensed) person. They may also expose you to liability if an unlicensed driver uses your car and is involved in an accident.

What Happens If an Unlicensed Driver Crashes Your Car After Stealing It

Unfortunately, car theft and carjacking are common across the United States. In 2023, more than a million vehicles were reported stolen. Vehicle theft rates have risen steadily across the country since 2019.

But what if an unlicensed driver crashes your car after stealing it? Are you responsible?

The good news is that a car owner generally isn't criminally or civilly liable if someone steals their car and causes injuries to others or property damage. You won't go to jail or face a lawsuit for the damages caused by joyriders unless your negligence contributed to the crime (or you are legally responsible for one of the criminals). Filing a police report immediately after a theft occurs is essential to prove your lack of responsibility. If you can show the care was stolen and used without your permission, you likely won’t be held accountable.

Picking Up the Pieces After a Crash

You may worry about your car insurance rates climbing after a crash. Unfortunately, this may happen. Car insurance providers consider numerous factors when determining your policy rates, including your claim history. They also consider the accident rates and crime statistics of your area. A collision with an unlicensed driver or a car theft can increase their perceived risk and drive up your premiums.

You may also have to buy a new car if yours was totaled in a collision. Getting a new ride can increase your premium, since a new car is usually higher in value than an older vehicle. Additionally, auto lenders usually require you carry full-coverage collision insurance to protect the value of their collateral. These policies have much higher premiums than liability-only or no-fault coverage. Think twice before handing your car keys to someone without a valid license.