You might wonder how auto insurance works if your car gets in an accident while your friend or family member is driving it.
In cases like these, liability depends on various factors, such as who caused the accident and the terms of your auto insurance policy. Another factor is how the driver obtained your car. For example, you may allow someone to drive your car, or someone may use your car without your permission.
If you let someone who shouldn’t be driving use your car, you might have to pay hefty accident damages out-of-pocket. You may also be subject to fines, and your insurance rates may increase. On the other hand, if someone drove your car without permission and wrecked it, you might have a big fight on your hands.
An accident involving your car will almost always affect your insurance to some degree. This is why checking if the borrower is properly licensed before letting them take your car is important. Moreover, they should understand your expectations, such as not driving while drunk or under the influence of drugs.
In this article, we will explain how liability works when someone else is driving your car.
Who Pays If Your Car Gets in an Accident With Someone Else Driving It?
In Texas, the driver who caused the accident is responsible for paying the damages. It doesn’t matter whether the owner or someone else was driving the other car.
This means that if a friend borrowed your car and they got hit, the at-fault driver’s insurance company should pay the bill. Car accident compensation benefits often cover car repairs and medical expenses.
In some cases, benefits include compensation for pain and suffering and lost earnings if the injured party cannot work.
What Happens If Your Car's Driver Is at Fault?
If someone else driving your car is at fault for an accident, your insurance usually pays the other driver for their losses. The cost of the accident often depends on the severity of the crash, so the amounts can range from a few thousand dollars to over a million dollars.
If the cost of the crash exceeds your auto policy limit, the driver’s own auto insurance may kick in and cover the difference. However, if the driver is uninsured, you could be personally responsible for paying any remaining costs.
When Can Your Insurance Refuse to Pay?
Your insurance company generally pays for damages caused by your car, whether you or someone else was behind the wheel. However, there are cases where your insurance may refuse to cover an accident if someone else was driving.
Let's explore a few situations where your insurance might deny accident coverage:
The Driver Didn’t Have Your Permission
If someone driving your car hits another driver, your insurer’s involvement will depend on the manner in which they obtained the car. If you granted them permission to use your car, your insurance should pay for the damages without issues.
The standard practice in auto insurance is that the policy follows the vehicle, not the owner. This means that your policy protection extends to anyone driving your car as long as they got it with your consent.
Note, though, that your insurance rates may go up after an accident if someone else was driving your car.
If someone drove your car without your permission and caused an accident, your insurance may refuse to pay. In this case, the driver’s insurance should cover the damages. However, there is often a struggle when a situation like this arises.
If a friend drove your car without permission and wrecked it, their auto insurance company may balk at paying the losses. It’s generally assumed that anyone driving your car has your approval to use it. This means that insurance companies are typically skeptical when you claim otherwise.
It can be tough to prove that someone you know drove your car without permission to get their insurance to pay the damages. If you cannot prove that the driver operated your car without your consent, you might get stuck with a huge bill for accident damages. If you find yourself in a situation like this, consult an experienced car accident attorney as soon as possible.
The Driver Was Excluded from Your Policy
When purchasing auto insurance, you may exclude certain people from driving your car. This could be as a result of their poor driving record, history with drugs, or health problems. For example, you may include your teenage child or elderly parent with dementia from using the car. Many people do this to save on insurance premiums.
If an excluded driver takes your car and gets involved in an accident, your insurance won’t pay for the damage. Instead, you’ll be personally responsible for all costs resulting from the crash, including medical bills, car repair costs, and lost wages for the other driver. These can amount to huge out-of-pocket expenses.
The Driver Was Drunk
Driving under the influence of drugs or alcohol is illegal in Texas. You should never let a drunk driver operate your car. If a drunk friend or family member takes your car and crashes it, your insurance will likely deny coverage.
The Driver Didn’t Have a Valid License
It’s illegal to drive in Texas without a valid driver’s license. People can lose their license due to unsafe driving habits, such as driving while drunk. If you let an unlicensed driver operate your car, your insurance won’t pay the damages if they cause an accident.
In addition to being liable for accident damages, you could face fines and penalties.
What Should You Do If Someone Else Crashes Your Car?
If someone else wrecks your car, report the accident to your insurance company and seek legal advice immediately. An experienced car accident attorney can help you obtain the maximum compensation if your car’s driver wasn’t at fault for the crash.
In situations where driver permission is disputed or drunk driving is involved, the attorney can help you navigate the case to reduce your liability.
Taking precautions can save you potential legal and financial problems. Whether you’re loaning your car to a friend or family member, ensure they’re responsible drivers with a valid license.
Sources
https://www.trustage.com/learn/property-insurance/friend-accident-auto-insurance
https://www.raphaelsonlaw.com/legal-insights/paying-damages-caused-by-someone-else
https://www.johnfoy.com/faqs/what-happens-if-someone-else-is-driving-my-car-and-gets-in-an-accident/
https://www.tpslawfirm.com/blog/if-a-friend-borrows-my-car-and-has-an-accident-am-i-liable/
