What Happens If Someone Drives Your Car and They Get in an Accident?

It’s common to lend your car to a friend or family member, but what happens if they get into an accident while driving your vehicle? This scenario can raise many questions and concerns about insurance coverage, liability and potential financial consequences.

Auto insurance policies typically cover permissive use, so if you give someone permission to drive your car, they would be covered under your insurance policy. However, if the person driving your car is specifically excluded from your policy, your insurance may not cover the accident, leaving you potentially liable for damages.

Even if your insurance does cover the accident, it will only do so up to your policy limits. If the damage exceeds your coverage, you may be personally responsible for the remaining costs.

Auto Insurance Accident Liability

In most cases, the vehicle owner’s insurance is considered the primary coverage, so your insurance would be responsible for covering damages and injuries caused by the accident, up to your policy limits.

If the damages exceed your policy limits, the driver’s personal auto insurance may serve as secondary coverage. However, if the driver doesn’t have insurance or has insufficient coverage, you could be held liable for the remaining damages.

If the driver of your car is found to be grossly negligent or engaging in reckless behavior (e.g., driving under the influence), your insurance company may deny coverage, leaving you and the driver personally responsible for the damages.

Potential Financial Consequences of Car Accidents

If your insurance company must pay out a claim due to an accident caused by someone else driving your car, your premiums may increase.

If you are sued by the other parties involved in the accident, you may face legal costs, even if your insurance company is defending you.

If your car is damaged in an accident, you’ll typically pay your deductible before your insurance covers the repairs. If the driver doesn’t have the means to reimburse you, you’ll be left to cover the deductible yourself.

Contact Us For Your Auto Insurance

Lending your car to someone always comes with a degree of risk. To minimize potential problems, be selective about lending out your vehicle and ensure they have a valid driver’s license and a good driving record. Review your auto insurance policy to understand your coverage limits and exclusions and consider increasing your coverage if necessary.

Contact Liberty Auto Insurance in San Antonio, TX to review your auto insurance coverage and get a quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.