Loaning a vehicle to a friend or family member is a common practice, but it can cause issues if there is a car accident. If the driver causes an accident while borrowing it, it is important to know what can happen next, as the owner can be held liable in certain situations even if they weren’t in the vehicle.
It is always important to handle the situation carefully and speak with a lawyer to get answers to any questions about the situation.
Here’s How to Handle an Accident in a Borrowed Vehicle
Know How the Insurance Works
Vehicle owners will want to make sure they know how their insurance works and who is covered by it. In most cases, the insurance will follow the vehicle, so if someone other than the owner is driving it and they are involved in an accident, the insurance company will cover the claim.
However, there are situations where accidents involving borrowed vehicles will not be covered. In those situations, owners will need to know if they may be found liable and have to pay out of pocket for expenses not covered by insurance.
Permission Versus No Permission to Drive
The basis for many accident claims involving borrowed vehicles depends on whether the driver had permission to drive the vehicle. If they were explicitly given permission, it is likely that the insurance will cover the accident.
This can also apply if the driver was not explicitly given permission, such as when it’s is borrowed regularly without having to ask permission each time. This is different from a stolen vehicle. If it’s is stolen, it is crucial for the owner to file a report to avoid liability if the car is in an accident.
The Owner Could be Held Liable
There are times when the owner could be held liable even if they were not in the vehicle. Depending on the situation, the insurance company may or may not handle the claim for them. This could happen if the owner of the vehicle let someone drive it even though they were visibly intoxicated when getting behind the wheel.
It could also happen if the owner knew the driver was unable to drive, whether due to a lack of a valid driver’s license, a lack of experience, or other issues, and allowed them to use the vehicle anyway.
What Happens if the Owner is Liable?
If the owner is found to be liable for the accident, even if they weren’t there at the time, they could be named in a lawsuit if the insurance coverage is not sufficient or is denied.
This could mean the owner must pay out of pocket to cover the compensation given to the victim of the accident. It is always a good idea for vehicle owners to speak with a lawyer to get help with this if they let someone borrow their car and it’s involved in an accident.
If you loaned a car to a family member or friend, or they were driving it without permission, you could be named in a resulting civil case and required to pay compensation to the victim through your insurance policy.
It is important to understand the laws and how they apply to your case, so it is a good idea to speak with a lawyer right away. Schedule a consultation now to get help.
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