What happens if someone else is driving my car and gets in an accident?
Have you ever let a friend or family member borrow your car? It can be a nice gesture, but it’s important to understand what happens if they get into an accident while driving your vehicle.
Does your car insurance coverage allow you to lend your car to a friend? If your friend is driving your car and unfortunately had an accident, whose car insurance pays up, his or yours? If your friend killed another person while driving your car, will you be also held liable?
In this article, we’ll explore the various scenarios that can arise and provide tips on how to protect yourself and your car when allowing someone else to drive it.
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Overview of car insurance policies
Car insurance is a type of financial product that helps cover the costs of damages or injuries that result from a car accident. It’s required by law in most states and can provide valuable protection for both you and the other driver involved in the accident.
Related: How does full coverage car insurance work? – your full guide
The only 2 states in the USA where you can drive your car uninsured are; Newhampshire and Virginia. In the above-mentioned states, it’s true, drivers can drive without insurance but you still need to show proof of financial responsibility in case you caused an accident.
In those states where auto insurance is mandatory, you will need a cash deposit or surety bond, or by purchasing a non-owner liability policy. These are the equivalent or alternative options for purchasing car insurance coverage for your vehicle.
There are several types of car insurance coverage you can choose from, including:
1. Liability coverage: This covers damages or injuries that you cause to another person or their property. It typically includes two types of coverage ie bodily injury liability and property damage liability.
2. Collision coverage: This covers damages to your own car from a collision with another vehicle or object, regardless of who was at fault.
3. Comprehensive coverage: This covers damages to your car from non-collision events, such as theft, vandalism, or natural disasters.
There is other important car insurance coverage you might consider buying depending on your insurance needs. For instance, are you driving a leased car or a financed vehicle? Do you live in an area where many people do not buy car insurance? Are you driving an expensive or brand-new car?
Depending on your situation, you may also need to buy personal injury protection (PIP) coverage, uninsured/ underinsured motorist insurance coverage, Gap insurance, and so many other policies.
When determining what coverage you have, it’s important to review your car insurance policy and talk to your insurance provider.
what happens if someone wrecks your car and they aren’t on your insurance?
What happens depends on car insurance policies in your state. If someone wrecks your car and they are not listed on your insurance policy, it’s possible that your insurance may not provide any coverage for the accident.
This is because your car insurance policies may typically only cover accidents that occur when the named insured (the policyholder) or certain listed drivers are behind the wheel.
Others also read: The Role of a Car Accident Attorney in Maximizing Your Compensation-Dolan Law Firm.
If someone wrecks your car and they are not on your insurance policy, you may be responsible for paying for any damages or injuries that result from the accident.
You should also be sure if your car insurance policies allow it or not. To protect yourself, it’s generally a good idea to only allow drivers who are listed on your insurance policy to borrow your car.
What happens if someone else is driving your car and gets in an accident?
So, what happens if someone else is driving your car and gets into an accident? The role of car insurance in covering damages and injuries largely depends on the type of coverage you have and the specifics of the accident.
If the driver has their own car insurance policy, their coverage may kick in to cover damages or injuries they caused to another person or their property. However, if the driver doesn’t have insurance or their coverage isn’t sufficient to cover the damages, your liability coverage may be used instead.
It’s also worth noting that some car insurance policies have provisions regarding who is allowed to drive the insured vehicle. For example, some policies only cover accidents that occur when the named insured (the policyholder) or certain listed drivers are behind the wheel.
If the driver of your car isn’t covered under your policy, it’s possible that your insurance may not provide any coverage for the accident.
Helpful article: Can I lose my house due to at fault car accident?- can an attorney protect it?
If the injured person sued to recover his losses and other damages, you may also be accused of letting such a reckless person drive your car and cause an accident. In addition to the at-fault person paying, you too the owner of the car will be held liable and you could be asked to pay additional damages.
For instance, if the jury awards $150,000 as damages to the injury victim and the at-fault party is only capable of paying $100,000. You the car owner will be asked to pay $50,000.
As the owner of the car, you may also be responsible for paying out of pocket for damages or injuries that aren’t covered by insurance. Additionally, your insurance premiums may increase or you may lose coverage altogether if you allow someone to drive your car who is not listed on your policy.
Does car insurance follow the car or the driver?
Car insurance policies differ from state to state. In some states, the insurance follows the car whereas, in other states, the insurance coverage follows the driver.
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In states where insurance covers the car, the insurance coverage of the car owner will pay damages, or car owner insurance coverage becomes the primary coverage.
On the other hand, in states where insurance coverage follows the driver, the insurance coverage for the person that borrowed your car becomes the primary coverage if she/he had an accident driving your car.
Protecting yourself when allowing someone else to drive your car
To minimize your risk when allowing someone else to drive your car, there are a few precautions you can take:
1. Choose the driver wisely. Check their insurance and driving record to ensure that you are a responsible and safe driver.
2. Add additional coverage. Consider adding extra coverage to your policy, such as an “occasional driver” endorsement, to provide protection when someone else is driving your car.
3. Have a written agreement. Have a written agreement with the driver outlining their responsibilities and liabilities while driving your car. This can provide additional protection in case of an accident.
Conclusion
What happens if someone else is driving my car and gets in an accident? If someone else gets into an accident while driving your car, the outcome can be difficult to predict. It’s important to understand your car insurance policy and consider adding additional coverage if necessary to protect yourself and your vehicle.
By choosing a responsible driver and having a written agreement in place, you can help minimize your risk and avoid potential financial and legal consequences.
