What If I Lend My Car to Someone and They Get into an Accident? (2024)

FAQs

What If I Lend My Car to Someone and They Get into an Accident? ›

Liability Laws in New Jersey

In most cases, your auto insurance policy will follow your car, not the driver, so if your friend or family member borrows your car and gets into an accident, your insurance will be the primary coverage that will apply.

In general, when you borrow a car, you borrow car insurance, too. Insurance typically follows the car, not the driver. That means if you are involved in an accident while driving someone else's car (not on your insurance policy), the owner of the car will probably be held responsible for any financial damages.

It is a liability risk, therefore, to let an uninsured person borrow your car. If you have collision and comprehensive insurance to repair your vehicle's damages, your premiums could increase for seeking benefits even if you did not cause the crash.

Although your friend was driving, insurance follows the vehicle. Therefore, your vehicle's personal auto insurance will help cover the damage to both vehicles. Subject to a deductible, your policy's collision coverage will provide payment for the damages to your vehicle.

Because California is an at-fault state, any driver who is declared at fault for a car accident must pay for the victim's injuries and property damage. So, if someone borrows your car in California and is injured in an accident they didn't cause, you'll need to file a claim with the at-fault driver's insurance company.

If someone borrowed your car, and caused a car wreck with injuries, the auto insurance coverage typically follows the vehicle rather than the driver. This means that your — the car owner's —insurance is generally the primary coverage in the event of an accident.

"Don't be cavalier about lending your car," adds Salvatore. "If you know someone isn't a good driver, think twice about giving your permission. Any crash they're in could go on your insurance record."

Excluded coverage: If a driver in your household has been explicitly excluded from coverage, they will not be protected by the insurance policy in case of an accident. This means that if the excluded driver is involved in a wreck, the insurance company is not obligated to cover any damages.

Roommates who live in your household and regularly operate your vehicle should be added to your policy. Friends can be added to your policy if they regularly drive your vehicle.

How do you safely let someone borrow your car? ›

Although you should check your individual policy, usually, you can let your friend drive your car without violating your coverage. As long as you give the person permission and they only drive the car occasionally, there shouldn't be an issue. Accidents, however, can happen anytime.

If someone is in an accident while driving your vehicle, you could be put in a difficult situation. Your premiums could go up. You could even be named in a lawsuit over property damage or injuries resulting from the incident. Make sure someone is a trustworthy driver with a good record before giving them the keys.

Before lending your car to a family member or friend, make sure they have a valid driver's license, that you have checked their driving history and abilities, and that you have copies of the registration and insurance policy located in the car.

This means that if your car is insured, then you will be responsible for covering the accident — whether or not the person driving your vehicle is also insured under their own policy. If your insurance policy does not include collision coverage, damages to your car will not be covered.

If your car gets dented, it's essential to contact your insurance company as soon as possible. While many insurance companies will cover the cost of repairs, there may be some circ*mstances in which you are responsible for paying a deductible.

In Florida, vehicle insurance follows the car, not the driver. This fundamental aspect of Florida insurance law means that if you lend your car to a friend or family member and they are involved in a crash, your insurance is the first to be called upon to cover damages.

You regularly allow a family member or friend to drive your car, but they aren't named on your auto policy. If this person gets in an accident while driving your car, your insurance company will likely deny your claim, leaving you liable for the damages.

No, California is not a no-fault state for auto insurance. California is an "at-fault" or "tort" state, which means the person who is at fault for a car accident is responsible for paying for other people's injuries and property damage resulting from the accident.

Does insurance 'follow' the car or driver in North Carolina? This question often arises when the at-fault driver is driving someone else's car. The short answer is that under North Carolina law, insurance follows the car not the driver.

California operates under the permissive use law. California Vehicle Code section 17150 states, “Every owner of a motor vehicle is liable and responsible for death or injury to person or property resulting from a negligent or wrongful act or omission in the operation of the motor vehicle, in the business of the owner ...