As a car owner, you have several responsibilities. Making sure that your vehicle is in competent hands if you loan it to a relative or a friend is imperative to your overall financial outcome. You – or technically your auto insurance – is responsible for your vehicle when someone else is driving it. There is a myth that says whoever is driving is responsible for the damages, but their insurance coverage will not transfer to your vehicle, so you are the one liable for the damages that they cause.
If your friend is driving your car and they have an at-fault accident, it will go on your insurance records as a claim. It is also your insurance rates that will increase because of the crash. Most states would consider your insurance coverage as the primary insurance if your car is crashed while in the care of a friend or relative. That means that your insurance policy will extend to cover the costs associated with injuries or damages that were caused by the crash in your vehicle.
Insurance Coverage And Crashes
That means if whoever driving your car is at-fault for the crash, then you are liable and your auto liability insurance coverage will pay for the other driver’s damages, such as medical bills, lost wages, pain and suffering, and property damages. Your liability coverage doesn’t cover your car’s damage or your friend’s medical expenses. If you have collision coverage, then your car repairs might be covered. You will still have to pay the deductible to have your car fixed.
While the vehicle owner’s auto insurance usually covers the damages caused by their vehicle, you cannot just make the assumption that all damages will be covered. Some policies don’t cover any relatives who live with you unless you have specifically included them on your policy. Other insurance policies might provide limited coverage – which is less protection than they would provide if you were driving. You should always read your policy and coverage very carefully and ask your insurance agent questions.
How The Other Driver’s Insurance Might Be Involved
While your friend might be covered by your insurance, there could be other problems. If the accident causes severe injuries and extensive damages that exceed the limits of your auto insurance policy, any insurance coverage that your friend has might be tapped into to help cover the remaining damage expenses.
It is also possible that although your insurance coverage has high enough limits to take care of the damages that your insurer will seek reimbursement from the insurer of your friend. Your insurance company might cover all the damages, but they could ask your friend’s insurer to reimburse them either part or all the costs they incurred.
Consult With A Personal Injury Attorney
If someone else was driving your car and they were involved in a car accident, you should consult with a personal injury attorney. With the help of a lawyer, you can ensure your rights are protected and make sure the process goes smoothly. Get your free case review today.
