What Happens if Someone Else is Driving My Car and Gets in an Accident?

One of the most common questions we hear is, “What happens if someone else is driving my car and gets in an accident?” The answer is your car insurance covers anyone driving the car, as long as they have your permission to do so in a borrowed car accident.

But what happens when someone borrows your car without permission and gets in an accident? What if they borrowed it for work or to deliver food for an app like UberEats?

These scenarios make the question a little more complicated. It also matters what your insurance policy actually says, as well as the state you live in.

If someone else was driving your car and got in an accident, check your insurance policy and call an attorney if you wish to seek damages. For a preview of what you can expect if this happened to you, read on:

What to Do During a Car Accident Involving a Borrowed Car

There’s almost one traffic collision every six minutes, so if you’ve been involved in a car accident involving a borrowed car, there is a set of steps you should follow:

1. The first thing you must do after a car accident is stop your vehicle. Hit-and-runs are a crime in most states.
2. Then check for injuries and call 911 if it seems anyone is hurt. You’ll most likely benefit from calling the police as well, as in some states it’s mandatory for them to write a report.
3. Next, get information. This includes exchanging information with the other driver. Be sure to ask for or take photos of contact info (full name, address, phone, email), car registration and insurance card, driver’s license and license plate, and car make, model, and color.
4. If there are witnesses, if possible, ask them for their contact information.
5. Take photos of any property damage, weather conditions, signs and traffic lights, and injuries.
6. Finally, don’t say anything incriminating or apologize after a traffic collision.

How Auto Insurance Works When Someone Borrows Your Car

If you, the vehicle owner, have coverage, the policy will follow the car in most accident cases.

Your insurance is the primary coverage that would apply if a crash occurred. The driver’s insurance would act as secondary insurance if policy limits are reached by the primary policy.

IMPORTANT: State law covers insurance guidelines, so consult with an attorney in your state to learn the rules that will affect your situation. Be aware of car accident statutes of limitations in your state as well.

Who is Liable During a Borrowed Car Accident?

The person who caused the crash is usually liable in a borrowed car accident, regardless of who drove your vehicle. If you live in a no-fault state, your PIP insurance will cover you and your passenger’s damages, regardless of fault.

If you have adequate car insurance coverage, your friend borrowed your car, and was the cause of the accident due to negligence, your liability coverage would pay for the other driver’s vehicle damage and injuries, up to the policy limit.

You would file the claim and have to pay the deductible. If your coverage isn’t enough, your companion’s insurance might cover the rest in some cases.

Proving Permission

The vehicle owner may not carry liability for damages caused by a driver of a borrowed vehicle if the driver is specifically excluded from the insurance policy or if the driver took the car without the owner’s permission.

Permission can be proven in a court of law. Verbal permission means that the owner said the borrower could use their vehicle and will testify as such. Written permission is easy to prove because it is provided in a text message, email, or note.

Implied permission is determined through previous conduct between the owner and the borrower. It matters, for instance, if the borrower had ongoing access to use the vehicle whenever they wanted. This would be the case with a roommate who had your extra set of keys.

What if the Driver Did Not Hold Auto Insurance?

If someone borrows your car without permission and causes an accident, your liability insurance will not cover that individual. Their insurance would be responsible for paying the claim. If the driver does not have insurance, the other driver involved in the accident would need to file an uninsured motorist claim with their own insurance.

If the driver who borrowed your car was not at-fault for the accident, it doesn’t make a difference that they are in a borrowed car. In most states, it would be the insurance of the driver who hit them that carries liability for any damages.

What if a Sibling Borrowed Your Car and Got Into an Accident?

If your sibling had your implied permission to borrow your car and got into an accident, your policy will cover it if your sibling was found to be at-fault. The law is generally no different because the driver is your sibling. It only matters if they had your permission to borrow your car or not.

Borrowed Vehicles for Work Use

A commercial insurance policy is required to drive a vehicle for work use, even if the driver is borrowing the vehicle. Also, most car insurance contracts nullify the owner’s insurance policy if the vehicle is driven for commercial purposes.

Since those who borrow a vehicle for work are required to have their own separate insurance for that purpose, your policy as the owner of the vehicle won’t cover the accident.

Borrowed Vehicle Accidents Involving a Food Delivery Vehicle

Delivering food for delivery apps like Uber Eats (or even for just one restaurant) counts as a commercial purpose. Again, a commercial insurance policy is required to drive a vehicle for commercial purposes, even if the driver is borrowing the vehicle.

People who deliver food for money are required to have their own separate insurance for that purpose. So, that insurance policy will cover the accident – not the vehicle owner’s policy. If the driver does not have this insurance, your policy as the owner of the vehicle still won’t cover the accident.

What Settlement Should I Expect After a Borrowed Vehicle Accident?

If another driver caused a recent accident that harmed you or your property, they are responsible for all resulting damages. In response, you can file a claim against their auto insurance policy.

The purpose of doing so is to receive a monetary settlement to cover all measurable economic losses (vehicle repair, medical bills, and lost wages) you suffered. You can also claim compensation for any pain and suffering caused by the accident that wasn’t your fault. In some cases, the settlement amount could reach six or seven figures.

Find an Auto Accident Attorney With LegalASAP

There are many types of car accidents that lead to filing a personal injury claim. With an attorney’s help, you may be able to reclaim losses resulting from the most common types of car accidents.

LegalASAP has a network of over 500+ firms with thousands of experienced lawyers located throughout the country. We can connect you with an attorney who specializes in auto accident claims in your state.

Before settling your claim, sign up for a free consultation so you don’t accept a settlement offer that’s too low. Fight back to secure the damages you’re owed.