Car Insurance. Who is insured?

Short answer? The latter. Here's the deal: Car insurance covers anyone who has permission or the reasonable assumption of permission to drive your car. So if a friend borrows your car and hits someone/thing, it's ok. Here's the tricky thing, though--if someone is a member of your household, they have to be listed on your policy. This is where things get a little silly: If your significant other lives apart from you and drives your car gets into an accident, no problem. But if you and your SO shack up together and the same thing happens, your SO better be on your policy, or the both of you could get screwed.