Vehicle owners may not hesitate to loan their cars to family and friends in need. Doing so is a gesture of trust. However, when an accident occurs while this individual is driving the vehicle, problems can quickly arise.
There may be questions about liability for borrowed vehicles. Who is responsible if there is an accident? Would it be the person driving or the vehicle owner? This question, along with many others, should be addressed before allowing anyone other than a co-owner to drive a vehicle.
The Dangers of Lending a Vehicle
Car owners might trust their family and friends completely, but they hesitate to lend them their car. Some people insist they are excellent drivers, but their driving record does not support this claim. They are overconfident drivers and put others in harm’s way. Sadly, when they cause an accident, they may try to place the blame on anyone other than themselves.
If an accident occurs, the person borrowing the vehicle might try to downplay the extent of the damage. They don’t want to be saddled with a high repair bill, so they make the damage seem less than it is. They may also promise to pay later. However, it isn’t as simple as that. A person must know who is liable for any damage if they lend their car and an accident occurs.
Who is Liable?
Vehicle owners must understand that their car insurance typically must cover any damage if they lend the car to someone and that person is involved in an accident. The owner will then be faced with high premiums, or their deductible may increase. The friend’s insurance might become involved, but only if the damages exceed the owner’s policy limits or in certain other situations.
When the friend doesn’t have insurance or their policy doesn’t cover borrowed vehicles, the owner might be responsible for all expenses related to the accident. A few states have a “permissive use” rule, which states that anyone driving the vehicle is covered under the owner’s policy; however, this isn’t the case with all states.
The Lasting Effects
Many people don’t realize how lending a vehicle to a friend can alter the dynamics of their relationship, particularly if they get into an accident. The friend may avoid any contact while the owner is left trying to track them down and get reimbursement for any out-of-pocket expenses related to the accident. Things can quickly become very uncomfortable for both parties, and the friendship might end with the owner never being paid.
If the other parties in the accident were injured or their cars were severely damaged, the owner may find that they are facing more than a simple insurance claim. The other parties could sue, resulting in the owner going to court for an accident that they had no part in. When lending a car, the owner should always ensure that all parties are clear about their responsibilities in the event of an accident. Put this agreement in writing to protect everyone.
People often don’t realize what could happen if they lend their vehicle to a friend or family member. If an accident occurs, they could be left holding the bag. Before lending the car, learn about permissive use coverage, verify the borrower’s insurance status, and put in writing who is responsible for what in the event of an accident. Of course, the best option might be to drive them where they need to go rather than lending them the car. Acting as their chauffeur will ensure these problems never arise.
