If a friend or family member asks to borrow your car, you would generally say yes, especially if you have confidence in them. However, unforeseen events, like an accident, can happen when you least expect them. Therefore, it’s essential to understand the implications of such situations.
Liability and Fault
In Nevada, accidents are handled using an at-fault system, which means that the person who caused the accident is responsible for paying for the damages. Establishing fault in these cases usually requires a detailed investigation, which can include reviewing police reports, collecting witness statements, and possibly even going through legal proceedings. This complex process aims to determine and assign responsibility for the accident.
As the car owner, you are responsible, even if someone else is driving. Your insurance policy will likely be the first defense line if the driver causes an accident while using your vehicle. However, there are certain exceptions, including:
- If the driver did not ask permission to use your vehicle
- If the driver is driving under the influence
- If the driver is driving without a license
In such instances, the driver at fault may be held responsible for the accident, and their insurance may be pursued to cover the damages.
Insurance Coverage
Understanding your insurance coverage is essential, especially if you were absent during the accident. Insurance policies usually consist of liability, comprehensive, and collision coverage. If someone else was driving your car at the time of the accident, your insurance serves as the primary coverage, while the driver’s insurance functions as the secondary coverage.
- Primary vs. Secondary Coverage: If a friend or family member causes an accident, your insurance will pay for the damages up to your policy limits. The other driver’s insurance may pay for the rest of the damages cost more than your policy covers.
- Impact on Premiums: Filing a claim may cause your insurance rates to go up, even if you weren’t the one driving during the accident. Your insurance company and the other driver’s insurance company will review the situation, potentially impacting your premiums.
- Understanding Your Legal and Financial Obligations
Following an accident, it is essential to remember that legal and financial obligations must be addressed. The individuals involved in the accident and the driver should be prepared to cooperate extensively with insurance companies and authorities, including providing precise information and necessary documentation.
- Potential Lawsuits: In case of disputes over compensation for an accident, the other party may file lawsuits. The car owner and driver could be sued, and insurance companies may also seek subrogation claims to cover costs.
- Reporting the Accident: In Nevada, accidents involving significant property damage, injury, or death must be reported to the DMV and the police to avoid fines and legal issues.
- Out-of-Pocket Expenses: Depending on your coverage, you may need to pay deductibles. You might also face out-of-pocket costs if the damages surpass your policy limits. Additionally, legal fees can accumulate if disputes over fault or coverage exist.
Protect Yourself When Lending Your Car
To mitigate risks when lending your car, following these preventive measures is highly advised:
- Documenting Permissions: While this is not a legal requirement, documenting permissions, whether written or recorded verbally, can be beneficial, as they can help clarify the terms of use and serve as evidence in claims and disputes.
- Understanding Your Insurance Policy: Being fully aware of your insurance coverage details is essential, especially when your vehicle is involved in a car accident. Sit down with your insurance agent and discuss various scenarios to understand the potential consequences and guarantee that you have sufficient coverage for any situation.
- Choosing Who Drives Your Car: Ensure that the individual you are considering lending your car to is a responsible, licensed driver with a clean driving record. Avoid entrusting your car to individuals who do not have insurance or a valid driver’s license.
Consult With an Experienced Legal Team
While lending your car to a loved one may seem like a mere generous gesture, it can quickly become an uneventful and stressful situation, such as the person you lent your car to get into an accident. At Jones Wilson Injury Lawyers, our team of experienced Henderson car accident attorneys is well-versed in all potential accidents, including those involving cars. So, if you need legal assistance and guidance, call 702-405-6000 today to schedule a call with us!