Who Is Liable for an Accident in a Borrowed Car?

Many people never think twice about loaning their car to a friend or family member. You probably think it’s the most natural thing in the world to let your cousin or best buddy borrow your car to run errands or go to work. There are many different reasons why someone might need to borrow a vehicle and you want to help out your friend or family member. In these situations, things usually work out just fine, and the person returns the vehicle to you. Sometimes, however, your friends or family members may borrow your car and end up in an auto accident.

If someone gets into an accident in a car that they borrowed from you, or you get into an accident while borrowing someone else’s car, the issue of liability will need to be settled. Liability will depend on a number of different factors; therefore, you should seek the counsel of an experienced car accident attorney.

When Your Car Insurance Policy Will Pay for an Accident in a Borrowed Car

If someone gets into a car accident while driving the car they borrowed from you, there are certain circumstances where your insurance may pay for the damages. Auto insurance typically follows the car rather than the individual driver, which determines how liability and coverage are assessed in car accidents involving borrowed vehicles. These circumstances include:

When You Gave Permission

When you give someone permission to borrow your car, that person is called a permissive driver. If that permissive driver gets into an accident, your car insurance policy covers the vehicle in question, making it the primary coverage for any damages. If the person who borrows your car has their own insurance, their insurance will provide any secondary insurance needed. This usually is necessary when the damages incurred in the accident exceed the liability amount covered by the primary coverage.

When It’s Someone from Your Household

Family members who are drivers and who live in your household are most likely covered by your policy since insurance companies usually require that all drivers in a household be listed on a policy. If those family members have borrowed your car and they get into an accident, they should be covered by your insurance coverage.

When Insurance Won’t Pay For a Borrowed Car Accident

There are circumstances where your insurance won’t pay if someone borrows your car and gets into an accident. The process of filing an insurance claim can be complex, especially when determining fault and coverage. Such circumstances include:

Car Is Borrowed without Permission

If someone borrows your car without your express permission, that person is called a non-permissive driver. As a vehicle owner, if they get into a car accident, your insurance most likely will not pay, and that person would most likely be liable for any damages. The problem here is that it’s sometimes very difficult to prove that you did not allow someone to borrow your car. One way to make sure that your insurance is not responsible for damages is by listing people in the “excluded driver” section of your policy. If they’re listed in that section, your insurance won’t cover them if they cause an accident while driving your vehicle.

Driver Was Under the Influence

If you lend your car to someone knowing that they were drunk or under the influence, and they get into an accident, your insurance will most likely not cover any damage caused by the accident. A car insurance company may increase your rates or deny coverage based on such negligence, as it would probably go against the terms of your policy.

Excluded Driver Insurance Claim

If you list someone as an excluded driver on your insurance policy, and they go on to borrow your car and cause an accident, your insurance policy will not cover them. If the excluded driver is at fault, the at fault driver’s insurance may be pursued for compensation. This will be true even if it turns out that you ended up giving the excluded driver permission to drive the car.

Effects on Insurance Rates

If your friend is at fault for an accident in your car, your insurance rates may increase. This is because your insurance company will have to pay out damages, and they may view you as a higher risk. The amount of the rate increase will depend on various factors, including the severity of the accident, the extent of the damages, and your driving history.

In some cases, your insurance company may raise your rates even if your friend was not at fault for the accident. This is because your insurance company may view the fact that you lent your car to someone who was involved in an accident as a sign of increased risk.

It’s worth noting that if your friend has their own car insurance policy, their rates may also increase if they are at fault for an accident in your car. This is because their insurance company will have to pay out damages, and they may view your friend as a higher risk.

To minimize the impact of a borrowed car accident on your insurance rates, it’s a good idea to:

• Make sure your friend has a valid driver’s license and a good driving record
• Check your insurance policy to see if it covers borrowed cars
• Consider adding a rider to your policy to cover borrowed cars
• Inform your insurance company as soon as possible if your friend is involved in an accident in your car
• Consider hiring a car accident attorney to help you navigate the claims process and minimize the impact on your insurance rates.

By taking these steps, you can help minimize the impact of a borrowed car accident on your insurance rates and ensure that you are protected in case of an accident.

Get the Support You Need from the California Car Accident Attorneys at Setareh Law

When you let someone borrow your car, and they end up getting into an accident, you will understandably be nervous. Navigating a personal injury claim can be complex and stressful, making it crucial to have experienced legal representation. Depending on the factors listed above, you may or may not be on the hook for damages relating to the accident. This could not only severely affect your finances, but it may also impact your ability to obtain affordable insurance in the future.

At Setareh Law, we have extensive experience helping our clients with all types of car accident cases. We understand how liability works with car accidents, and we work hard to help our clients get the best outcomes possible. Contact us at (310) 659-1826 for more information, or complete our contact form to schedule a free case evaluation.