If you typically lend out your car to others or maybe you share a car with someone, this question can come up a lot. Hopefully, you will never have to find out the answer to this question the hard way, which is why we are here to help you.
Now there is no step by step answer to this question but rather a yes or no, which you should consider before deciding to lend your car out to someone. With that, let’s get into today’s article!
The short answer is that if someone else is driving your car and they get into an accident, more than likely your own car insurance will be liable. A common misconception is that car or auto insurance follows the person rather than a car, but for most policies, it is the other way around.
So if they are driving your car, it will still go on your own car insurance record, not that of the driver’s. Now to be clear, this is only how a majority of car policies work and usually you can get this adjusted by they may charge you an additional fee.
Therefore it is possible to hold others accountable for the crash since you were not the driver, but the insurance company will charge you more anyways basically as a penalty for letting someone else drive your car.
However, there is a catch to the general policy and it is that the driver of your car had no permission to be driving your car at the time. So if you give them the thumbs up to borrow your car, then you would be held accountable for their actions.
If the person takes your car without your permission, then you can hold them accountable rather than suffering from their mistakes with your own insurance.
Now you will still most likely have to file a claim that this incident happened, but without permission, it is much more likely that the auto insurance of the driver would be considered the primary coverage.
Again this is all situational-based and seems to be the fine print of most auto insurance policies so be careful with what you get yourself into.
Another possible situation is that the person driving does not have auto insurance and they get into the accident. In this situation your insurance as the car owner would most likely help pay for the damage, however a majority of the fees would come out of the pocket of the driver.
Without insurance, they could be held directly responsible and simply have to pay for everything on their own. Of course, this is really the worst situation for everyone involved and in order to prevent this from happening, we highly suggest that you check with the person driving your car prior to letting them borrow it.
We hope you found this article helpful and that you are a little more careful now when deciding to let people borrow your car.