Your auto insurance protects you from any financial liability in the event of an accident. However, if your friend or family wrecked your car after borrowing it, you need to understand the liabilities to ensure you receive compensation for the damages. The experienced car accident lawyers at Rutter Mills in Virginia have provided an important video (seen here: https://www.ruttermills.com/car-accident-law/you-loaned-your-car-to-someone-and-they-wrecked-it-what-now/ ) that provides clarity on who is to be held responsible for this type of car accident.
If someone else has caused an accident using your car, it will most likely be covered by your own insurance. It is critical to contact your insurance company as soon as such a scenario arises. It is important to note that your assets and your bank account are unlikely to be involved in such cases.
If you have given someone permission to drive your car, you are making them the permissive driver, and if you are involved in an accident, then your insurance will cover the cost. This is because most common auto insurances follow the car and not the individual, so you are basically lending the insurance with it if you lend your car. The liability coverage of your insurance would cover the damages caused to the opposite party, and the collision coverage will cover any costs relating to the damages to your car. If the damage caused by the person who borrowed your car is exceeding the limits of your coverage, then the permissive driver can use their own auto insurance policy and liability insurance coverage to cover the costs.
In situations when your car has been driven by a non-permissive driver, such as when a friend or family member used it without your permission, they are directly liable for the damages that they have caused. Your insurance will not cover any such damages. Additionally, if you have specially excluded someone from your insurance policy and such a person is involved in an accident while driving your car, then the insurance will not cover under these circumstances as well.
What happens if someone stole your car and was involved in an accident?
If your car was stolen and the person driving the car crashed it, your insurance will still be involved and will most likely cover the damage to your own car. You are not directly liable for any injuries and damages caused in such cases.
What is negligent entrustment, and will the insurance cover it?
Your insurance will be loaned with your car in most cases except under negligent entrustment. If you entrust your car to somebody you know who shouldn’t be driving, such as an underage person, or someone drunk, or a high-risk family member, then your insurance will not cover such cases too. It is always advisable to entrust your car to someone you know is eligible to drive and safely drive your car.
How can a car accident attorney help you?
When someone else is driving your car and meets with an accident, it is recommended to get help from an expert car accident attorney. A knowledgeable lawyer will help you understand your policy coverage, help you file for insurance claims, and ensure you receive fair compensation for your losses and damages.