If you are like many people, you may not give a second thought to lending your vehicle to a family member or friend to help them out. Or maybe your babysitter drives your kids in your more dependable vehicle. But what happens if this person gets in a car accident while driving your car? Will their automobile insurance policy cover the damages caused by the crash?
What Could Happen If You Give Someone Permission to Drive Your Vehicle
You may have decided in part to lend out your vehicle because the person had a good driving record and a good automobile insurance policy. However, the accident would follow the vehicle driven in the crash, not the driver. Depending on who caused the crash, the following could happen:
- If the person you lent your auto to was at fault, you would face liability as the owner of the vehicle, and your insurance policy would be primarily liable. The insurance policy for the person who borrowed your vehicle would be secondarily responsible. This secondary insurance policy could pay to compensate the victims if the amount they are entitled to exceeds your policy limits.
- If the other driver was at fault in causing the accident, he would be liable for compensating any injured victim—and you for your vehicle damage.
- If the person who borrowed your vehicle was uninsured, you could be liable for all of the damages. This means that you could face personal liability if the amount owed is more than your insurance limits.
This assumes that the person you lent the vehicle to is not someone excluded from coverage under your vehicle insurance policy. In addition, if the person took your vehicle without your permission, his own insurance policy could be primarily liable, and you most likely would not be responsible for any damages.
Did a friend or family member use your vehicle and get into a crash? Did you suffer damages to your vehicle or your property? Call our firm at 866-299-0558 to schedule a free consultation with our experienced legal team who would be happy to answer your questions about your legal responsibilities and options.