AskPatty's Back-to-School Tips 5: Car Insurance Follows The Car
In case of an accident, car insurance follows the car, not the driver. So if your student lends his or her car to a friend or roommate, you could be liable if an accident occurs.
Even if the friend has great coverage with the highest limits and the lowest deductibles, your car insurance would have to cover the damages if the friend gets into an accident while driving your student's car.
So, if your student is thinking of letting his or her roomie drive the car, keep in mind that you're not only lending the car, you're also lending your car insurance.