Accidents After Lending Your Car: What To Know
It's extremely common for people to allow others to drive their vehicles at times. However, when an accident occurs, you could be held responsible in certain cases. When you lend your car to someone and an accident occurs, several potential consequences may arise. Read below to find out what might happen.
Insurance coverage: If you have comprehensive auto insurance, it typically covers damages to your vehicle regardless of who is driving it. However, specific details may vary depending on your insurance policy. If the driver you lent your car to has their own insurance policy, it may provide primary coverage in case of an accident. It's important to report the accident to your insurance company and provide accurate information about the driver involved.
Liability: The person driving your car at the time of the accident may be held liable for any damages or injuries caused. If they were negligent or at fault, they could be responsible for covering the costs. However, as the owner of the vehicle, you might also be held liable in some situations, depending on local laws and circumstances surrounding the accident. For example, you might have lent your vehicle to someone that is not licensed to drive, that has a bad driving record, that was inebriated, and more.
Lawsuits: If the accident results in significant damage, injuries, or fatalities, any injured parties may file a lawsuit seeking compensation for their losses. The driver of the vehicle and/or the vehicle owner could potentially be named in the lawsuit, depending on factors such as negligence and liability.
Deductibles and financial responsibility: If you need to file an insurance claim to cover the damages, you may be required to pay a deductible. This is the amount you must contribute before your insurance coverage applies. Depending on the terms of your policy, you could be responsible for paying the deductible. Additionally, if the damages exceed your insurance coverage limits, you might be financially responsible for the remaining costs.
Future insurance premiums: If an accident occurs while your car is being driven by someone else, it could have an impact on your future insurance premiums. Insurance companies may view you as a higher risk and adjust your rates accordingly when it's time to renew your policy.
If you find yourself in the above situation and are being targeted as the responsible party, you will need legal advice right away. Speak to a company, such as Blackwell Ruiz Injury Law, for help in navigating the complexities of the laws that govern this subset of accident situations.