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Sustained by the financial strength that only comes from long-term stability, car insurance companies offer auto insurance plans that cover an extended period of time. It's not that you should never loan out your car to a friend, but you need to qualify any driver when you do. If your friend has kept the car well beyond the agreed upon loan period, it is now a stolen vehicle. Us Too. A Look Into the Future: What Will the can you rent a car with a permit Industry Look Like in 10 Years? Even if your friend or family member have their own insurance (with better or worse coverage), it will not apply if they get into an accident while driving your car. 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