Anyone who has lent their car to a friend or family member has likely wondered, “What happens if someone else is driving my car and gets in an accident?” The National Safety Council estimates that the costs for most car accidents range from $5,700 to $155,000. The cost can increase to over $1 million if someone dies in the wreck. Someone has to pay for these losses.
You want to be prepared for the worst-case scenario if you let a friend drive your car — or if you drive someone else’s. You might ask, “Will my insurance cover me if I drive someone else’s car?” Asking questions like these is crucial, especially if you get into an accident and face medical bills and other collision-related costs.
Basics of Auto Insurance in California
California law requires you to carry an adequate auto insurance liability policy for every vehicle you own. But it can get confusing, and not everyone knows the answers to questions like “Does car insurance cover the car or the driver?”
Because California’s financial responsibility law requires drivers and owners to have proof of insurance “in effect for the vehicle” inside the vehicle at all times, it is clear that insurance follows the car.
When a car accident happens, California places responsibility for the costs of that accident on the party responsible for the crash. For this reason, California is sometimes referred to as an “at fault” auto insurance state since the at-fault driver can be ordered to pay damages to any other person injured in the accident.
In most cases, the car insurance policy in effect for the at-fault driver’s vehicle will pay for claims submitted by those hurt in the wreck up to the policy’s limits. Injury victims whose harm is not fully covered by insurance benefits can also file a lawsuit against the at-fault driver personally.
Minimum California Auto Liability Limits
California sets certain minimum policy limits for personal automobile insurance policies. You can always contract with your insurer for higher policy limits, but your policy cannot have lower coverage than the legal minimums.
To meet California insurance requirements, your liability coverage should pay a minimum of:
- $15,000 if one person is injured or killed in the crash
- $30,000 if two or more individuals are injured or killed in a single crash
- $5,000 for damage caused to others’ property
You can also purchase additional coverage to protect you and the occupants in your vehicle. For example, your insurer may offer uninsured/underinsured motorist coverage that pays you benefits if the at-fault driver does not have adequate insurance coverage.
Although insurance coverage is required by state law, your policy with your insurance company is a private contract. You must read your policy carefully to ensure you understand what activities are covered and the situations in which your insurance carrier will not pay claims.
What Happens if Someone Else Wrecks Your Car?
Suppose that you lend your vehicle to a friend, and they are involved in a crash. What happens next depends on who is determined to be at fault. Finding out what led to a car accident and who is to blame is not a simple task. Law enforcement officers and insurance providers may look at the following evidence:
- Statements from those involved in the crash
- Observations of eyewitnesses who saw the collision happen
- Cell phone records of drivers that may show one was distracted
- Results of blood or urine tests that might indicate a driver was impaired
- Photographs and video footage that capture the moments before the crash
It might be determined that another driver is entirely at fault for causing the crash. In that case, that driver’s insurance company will be responsible for paying for your friend’s medical bills and the damage to your car. If that insurance policy covers all of your costs, neither your nor your friend’s insurance provider will pay.
Can Someone Drive My Car if They Are Not on My Insurance?
Some car owners believe that their insurance company is not responsible for paying if the driver was never added to their policy. Ask these people, “What happens if someone who isn’t on your insurance crashes your car?” They might answer that the driver’s own insurance company or resources are all that is available to pay damages.
However, that isn’t the case. Recall the answer to this question: “Does insurance follow the car or the driver?” Automobile insurance is there to insure the vehicle, not any particular driver.
As a result, as long as you have given the driver permission to drive your car, your insurance policy should cover the costs after that driver causes an accident.
The Role of Comparative Negligence in California
Fault in a car accident case is rarely straightforward. Often, multiple individuals’ careless choices play a role in bringing about a car accident.
In California, all negligent actions by all participants in a crash are considered. While a person might not be liable for others’ losses, their careless errors can reduce the compensation they might recover from the at-fault driver.
Who Pays When the Person Driving Your Car Is at Fault?
When your car is involved in a crash and the driver of your car is at fault, any injured person can file a claim against your insurance policy.
It does not matter whether the person behind the wheel of your car had insurance; drivers and passengers who were hurt because your vehicle was driven carelessly can seek compensation from your insurance company.
Suppose that your insurance policy is not sufficient to cover the injured person’s medical bills. That does not mean that you are personally liable for the remaining costs. Generally speaking, an adult driver whom you let borrow your car is responsible for their own choices and actions.
For instance, you are generally safe from being sued if the person driving your car chooses to speed or break the law. While your insurance company will have to pay the claims of those who are hurt, those injury victims will not be able to sue you personally for any additional costs beyond what the insurance company pays.
However, there are several situations where you could be personally responsible for damages when you lend your car to someone else:
Parents Are Liable for Actions of Minor Children
Parents are responsible for the negligent acts of their children, including careless actions behind the wheel of a car. Therefore, when you give your minor child permission to drive the family car, you could be sued and held responsible if your child causes an accident through negligent behavior.
You Are Responsible if You Knew or Should Have Known the Driver Was Impaired
You can also be held personally responsible for injuries caused by an impaired driver to whom you lend your car. For liability to apply in this circumstance, there must be some reason for you to know that the driver was impaired when you lent them your vehicle.
For example, you could face a lawsuit if you ignored obvious signs of impairment or if you were the one who gave the driver alcohol or drugs.
You Might Be Liable if You Had Reason to Suspect the Driver Was Not a Safe Driver
Finally, injury victims can hold you personally responsible for the harm a driver of your car causes in an accident if you lent your vehicle to the driver despite the driver’s unsafe habits.
Suppose that you know your friend has received multiple speeding tickets or has been involved in several wrecks in the past. You could be found liable for the harm they cause if you lend your friend your car despite this knowledge.
Have you asked yourself, “What happens if an unlicensed driver has an accident with my car?” The same analysis would be applied in this situation. If you knowingly allowed an unlicensed driver to use your car, you could be held personally liable for the damage they cause others if your insurance policy benefits are not enough to compensate victims fully.
You Hold No Responsibility for Injuries Caused by a Car Thief
If you do not give someone express or implied permission to use your car, but they do so anyway, chances are high that you will not be held personally responsible. In such a case, the thief’s insurance provider, if any, and the thief will be primarily responsible for covering others’ injuries and losses.
Driving an Uninsured Vehicle
Now, consider what happens if you were to drive an uninsured vehicle. Suppose that you are assisting a friend by driving the friend’s vehicle, but the friend does not have an insurance policy. You have a liability policy on which you are listed as an insured driver, but the policy is for a different vehicle.
In this case, if you were to cause a crash, your own policy would step in and provide some coverage for you. This could keep you from bearing the full brunt of injured individuals’ claims. However, there may be some losses that would not be covered and that you would be responsible for paying.
You should review your policy carefully to learn what specific coverage your insurer offers you when you are driving a borrowed vehicle that is not insured.
Frequently Asked Questions
Insurance coverage can be challenging to figure out, and the potential for confusion is great. Here are some simple answers to a few complicated questions:
What Happens if Someone Wrecks Your Car and They Aren’t on Your Insurance?
In most cases, even if a person is not listed on your insurance policy, they will be covered as long as they are using your car with your permission. When they crash, your insurance provider may be responsible for paying claims to injured individuals.
However, suppose that the uninsured driver was in the habit of driving your vehicle regularly. Your insurance provider may argue that the driver should have been listed on the policy, and the claims process will become more complicated.
Will My Insurance Cover Me if I Drive Someone Else’s Car?
Possibly, yes. If the car you are driving is not covered by its own insurance policy, your policy may provide some coverage in the event you cause a crash in the borrowed vehicle. However, you may not receive all the coverage you would otherwise get if you were driving your car.
Who Pays if an Uninsured Driver Causes a Wreck in an Insured Vehicle?
In most cases, the vehicle owner’s insurance policy will pay after crashes caused by any uninsured driver driving insured cars. Insurance coverage does not necessarily depend on whether a driver has a personal auto insurance policy. As long as the person uses the vehicle with the owner’s permission, they should be covered.
What an Attorney Can Assist You With Following a Crash
If you or a loved one has been hurt in a Lancaster car accident, turn to Kuzyk Law for professional and dedicated legal assistance from a Lancaster car accident attorney.
We can help untangle the web of insurance coverage and determine who should pay for what. If an insurance company should pay a claim but refuses to do so, our team can spring into action and help hold negligent drivers and insurance companies accountable.
Contact Kuzyk Law promptly after your car accident for help with all your legal needs.
