Feb 20, 2025 - Blogs by Sky Law Group
Imagine this scenario: A friend or family member borrows your car for a quick errand, but while driving your vehicle, they get into an accident. You’re relieved that they’re not hurt, but then the legal questions start swirling. Could you, as the car owner, be held liable for damages? Will your car insurance policy cover the damages? More importantly, can you be sued for an accident caused by someone else while driving your car?
In this post, we will explore when and how a car owner may be liable if someone else drives their car and causes an accident. We’ll break down liability insurance, insurance policies, and what steps you should take to protect yourself from lawsuits.
Understanding Liability: Who Is Responsible for the Accident?
When someone else drives your car and gets into an accident, the liability typically falls on the at-fault driver. However, as the owner of the vehicle, you could still face legal and financial consequences under certain circumstances.
How Liability Works in Car Accident Cases
Liability in a car accident is generally determined based on negligence. The at-fault driver’s insurance is usually the primary coverage for the damages. However, if the driver’s insurance company refuses to cover all damages or if the driver is uninsured, the car owner may be liable.
Scenarios Where the Car Owner May Be Held Liable
Certain circumstances may result in the vehicle owner being held responsible for damages:
- Permissive Use: If you gave permission for someone to drive your car, your auto insurance coverage might be required to cover damages.
- Negligent Entrustment: If you allowed an unlicensed, reckless, or intoxicated driver to use your car, you may be sued for damages caused.
- Employer Liability: If an employee drives your vehicle for work and causes a car accident, you may be liable under vicarious liability laws.
When the Car Owner Is Not Liable
There are also cases where you, as the owner of the car, may not be held responsible:
- If the driver used your car without your permission (such as theft).
- If the at-fault driver has their own insurance policy that fully covers the damages.
- If the accident occurred while the driver was committing a crime.
How Does Car Insurance Handle These Situations?
Understanding how auto insurance policies work in these cases can help you determine whether you’ll be responsible for covering damages.
Primary vs. Secondary Insurance Coverage
In most cases, car insurance follows the car, not the driver. This means:
- The owner’s auto insurance policy acts as the primary coverage.
- The driver’s insurance policy may provide secondary coverage if the damages exceed the primary policy’s limits.
What Your Insurance Policy May Cover
If someone else is driving your vehicle and causes an accident, your insurance may cover:
- Bodily injury and medical expenses for those injured in the accident.
- Property damage to other vehicles or structures.
- Personal injury protection (PIP) or no-fault insurance, depending on your state.
However, if the accident exceeds your insurance coverage, you may need to pay out-of-pocket, or the injured party may sue you.
When Insurance Won’t Cover the Accident
There are cases where your insurance policy may not cover the accident, including:
- If the driver was excluded from your policy.
- If the driver was using your car for unauthorized commercial purposes.
- If the accident was caused by drunk driving or reckless behavior.
What to Do If You’re Sued for an Accident Caused by Someone Else?
If you find yourself facing a lawsuit after a car accident that someone else caused while driving your car, take the following steps immediately:
1. Contact Your Auto Insurance Company
- Report the car accident to your insurance company immediately.
- Confirm whether your liability coverage applies to the accident.
- Work with your car accident attorney to understand your rights.
2. Gather Evidence
- Obtain a copy of the police report.
- Collect witness statements and surveillance footage if available.
- Gather all communication records with the driver’s insurance company.
3. Seek Legal Representation
- Consult an experienced car accident attorney to help you navigate the case.
- If the damages exceed your insurance coverage, a lawyer can help negotiate settlements or defend you in court.
- Your law firm may help file a counterclaim if necessary.
Conclusion
Lending your car to someone may seem like an innocent favor, but if they cause an accident, you may be held liable for damages. Understanding how insurance companies handle these cases and knowing when you might be legally responsible can help you make informed decisions before letting someone borrow your car.
If you’re facing legal trouble due to a car accident caused by someone else, seeking advice from a car accident lawyer is crucial. An experienced car accident attorney can help protect your rights and work to minimize your liability.
FAQs
Can I be sued if my friend crashes my car?
Yes, you may be liable for damages if your insurance policy limits are exceeded or if you knowingly allowed an unfit driver to use your car.
Does my car insurance cover someone else driving my car?
Most auto insurance policies will cover accidents caused by someone with your permission, but coverage varies.
What happens if someone borrows my car without permission and crashes?
If someone drives your car without permission, you typically are not liable for the accident, but the driver’s insurance company may have to cover damages.
Should I hire a lawyer if I’m sued for a car accident caused by someone else?
Yes, an accident attorney can help protect you from financial and legal consequences.
How can I protect myself before lending my car?
Make sure your auto insurance policy includes liability coverage, and only lend your car to responsible drivers.