This is a very common question for most people, and the answer is not always as clear as we might think.
Nowadays, most auto insurance companies offer policies in which "Permissive Use" is allowed. Permissive Use allows for drivers who are not insured on your policy to drive your car, but only temporarily (these are non-household members). Having said that, most auto insurance policies offer "Permissive Use" an added feature of your policy and not a standard feature. This means that if you want to be sure if your friend can drive your car, you must read the fine print on your auto insurance contract.
Generally speaking, all things being equal, the less expensive your auto insurance policy is, the less features it has, and therefore, the more limited coverage you will have.
Be sure to ask your insurance agent to thoroughly review your auto insurance policy with you for any gaps in coverage. Sometimes a $50/year coverage can make all the difference in the world.
If you want us to review your insurance program, give us a buzz (or email)!