Many people who own a car have let their friends or family members drive their vehicle at some point. What happens if someone else drives your car and gets into an accident in California? If the person who borrows the car is in an accident, it can create problems in addition to the regular challenges of navigating a car accident claim.

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When you let someone borrow your car and give the driver permission, that person is also using your insurance policy. In most cases, insurance coverage generally applies when you have granted driver permission, but if permission was not given, coverage may be denied, and liability issues can arise. You should only allow individuals with a valid driver’s license to drive your car to avoid legal and financial liabilities. Car insurance covers your vehicle, not you specifically. In California, vehicle owners are liable for accidents caused by individuals they permit to drive their vehicles if the driver is unlicensed. Lending your car to someone without a driver’s license can increase your risk of being held liable. How does this affect an accident claim and coverage in California?

Similar legal and insurance considerations apply when you borrow someone else’s car, so it’s important to understand the insurance coverage and liability involved.

California’s Comparative Fault Standard

Personal injury claims, including car accidents, use a comparative fault or negligence standard in California. Essentially, this rule says that more than one person can be responsible for the accident and that each person’s compensation for damages will be decreased by their percentage of fault. California is a ‘fault’ state, meaning the driver who caused the accident is responsible for damages. The comparative fault process is used to determine fault in car accidents by investigating the circumstances and assigning responsibility. This fault rule is demonstrated in the example below:

Sarah lends her car to her brother Mike for the day. While driving, Mike gets into an accident when another driver runs a red light and hits the car. Initially, it appears the other driver will be found completely at fault for the accident. However, upon investigation, it was discovered that Mike was texting while driving and didn’t notice the other car approaching the intersection in time to take evasive action.

The other driver is 70% at fault for running the red light, and Mike is 30% at fault for distracted driving. The judge awarded $15,000 in legal damages based on the determined fault, but that amount is reduced by Mike’s percentage of fault, so the actual compensation received is $10,500.

What to Know About Car Insurance After an Accident

Taking immediate action after an accident is crucial to protect your interests; consulting a reputable law firm early on can be beneficial.

Car insurance companies are for-profit businesses. They want to make money, which means cutting costs. When an insurer offers you a settlement amount, it is almost always lower than what is needed. Consider this carefully before agreeing to a settlement offer from an insurance company.

Understandably, you would want your property damage addressed as quickly as possible after a friend or family member gets in an accident in your car. However, accepting a subpar offer can cause more harm than good. Speaking with an attorney before you agree to anything can ensure your best interests are considered in negotiations.

Also, be aware that, even though you may not have been at the scene of the accident, it is important to gather evidence as soon as possible. This includes obtaining witness statements, photos or videos, and a police report. Seeking immediate medical attention is also important, and keeping medical records can serve as crucial evidence for any injuries or damages. You should contact your insurance company as soon as possible to report the accident after it occurs.

Establishing fault and limiting your or your loved one’s liability after an accident is important, which means collecting evidence to support your claim is crucial. The insurance adjuster will investigate the accident and determine liability, so having thorough documentation is essential. Your car accident attorney can help you or your friend navigate this process with ease and confidence.

Insurance Coverage and Borrowed Cars

Navigating insurance coverage when someone else is driving your car and gets in an accident can be a challenging situation for any car owner in California. Under California law, car insurance policies generally follow the vehicle rather than the individual driver. This means that if you permit someone to drive your car and they are involved in a car accident, your car insurance policy will usually provide the primary coverage for any resulting damages. Your car insurance will cover damages up to its limits before any other insurance kicks in. If a driver who borrowed your car causes an accident, your insurance will typically be considered the primary coverage, though you may also see an increase in car insurance rates.

However, there are important exceptions to this general rule. If the person driving your car is specifically excluded from your insurance policy, or if you knowingly allow someone to drive your car while they are under the influence, your insurance company may deny coverage. In these cases, you could be held liable for covering damages out of pocket, making it crucial to understand the terms of your car insurance policy and to consult a car accident attorney if you find yourself in this situation. If you lend your vehicle to someone who causes an accident while driving under the influence, you may also be held liable for negligent entrustment, not just if they are a negligent driver.

Liability insurance is a key part of every car insurance policy in California. If someone else is driving your car and causes an accident, your liability coverage typically pays for the other party’s property damage and medical bills, up to your policy limits. Liability coverage generally covers injuries to third parties caused by the driver of your car up to the policy limits. If the other driver is at fault, their insurance should cover the damages. However, even if you were not behind the wheel, your car insurance rates may increase after an accident involving your vehicle, as insurance companies often view lending your car to others as a higher risk. In California, if someone else has an accident in your car, your liability is typically limited to $15,000 for bodily injury to one person, $30,000 for bodily injury to multiple people, and $5,000 for property damage, per accident. If the damages exceed your insurance policy’s limits, you could be personally responsible for the excess costs.

There are also situations where you may not be held liable. If someone takes your car without your permission and gets in an accident, you may not be responsible for the damages they cause. Still, it’s important to speak with a car accident lawyer to clarify your liability and protect your interests. You may be found liable for damages if you entrust your vehicle to a minor or an unlicensed driver with a history of motor vehicle violations, particularly if you know they are a risk.

Another concept to be aware of is vicarious liability. In some cases, such as when an employee is driving your car for work purposes, you, as the car owner, could be held liable for their actions under California law. Understanding when vicarious liability applies can help you avoid unexpected legal and financial consequences.

To safeguard yourself, always review your car insurance policy for details about liability coverage, excluded drivers, and the process for covering damages when someone else is driving your car. If you have questions about your insurance coverage or need help after an accident, reach out to a personal injury attorney or car accident lawyer for a free consultation. Being proactive about your insurance details and legal rights can help you handle any accident involving your car with confidence and ensure you receive fair compensation for your losses. Accidents involving borrowed vehicles can stay on your insurance record for three to five years, affecting your rates in that time. You must file a Report of Traffic Accident (SR-1) with the California DMV within 10 days if an accident results in an injury, death, or property damage over $1,000.

When Someone Else Was Driving

California requires all motorists to carry at least liability insurance on their vehicles. If you have insurance coverage on your car, the licensed driver you let borrow it will also be covered under your policy. However, the person borrowing your car must have a driver’s license to be covered and to avoid legal issues. Always ensure you only lend your car to someone with a valid driver’s license to avoid legal and financial risks. They can file a claim against your insurance policy, which means that you may experience increased premiums or additional penalties associated with the accident that you weren’t involved in. If the driver of your car was not at fault, their insurance would cover the damages. Lending your car to someone with prior motor vehicle violations can increase your risk of liability and may impact your insurance coverage.

Many spouses or live-in partners add each other to their car insurance policies. However, even if that is not the case, your insurance should cover the accident even if someone else was driving. Vehicle owners should ensure the person borrowing their car has a valid driver’s license to avoid liability. If the other driver was at fault for the accident involving your vehicle, then you or your friend would file a claim against that driver’s car insurance policy. If the accident was caused by a negligent driver, you could face additional legal and financial risks. If damages from the accident exceed your policy’s primary coverage limits, the driver’s insurance may provide secondary coverage to pay for any remaining damages.

Understanding the risks involved when borrowing someone else’s car is equally important. As a borrower, you may be held liable if you cause an accident, but the car owner may also share some responsibility under California law. It’s essential to review the car insurance policy and understand what is covered, including liability coverage and collision coverage, before driving someone else’s car. If the other driver was acting as your agent or employee, you may face greater liability under the doctrine of negligent entrustment.

Car Accident Scenarios Involving Someone Else Driving Your Car

When someone else is driving your car and gets into a car accident in California, the details of the situation can make a big difference in how insurance coverage and liability are determined. Understanding these scenarios can help you protect yourself and your finances if your car gets involved in an accident.

Permissive Use: The most common scenario is when you permit someone else to drive your car. In this case, your insurance coverage typically applies as the primary policy. If the person driving your car is involved in a car accident, your insurance will usually cover damages up to your policy limits. However, you may still be held liable for any costs that exceed your coverage, and your insurance rates could increase as a result of the accident.

Non-Permissive Use: If someone else is driving your car without your permission—such as if your vehicle is stolen or taken without your knowledge—your liability is generally limited. In these cases, your insurance company may deny coverage for the accident, and the person who took your car could be held personally responsible for any damages. It’s important to report unauthorized use to both the police and your insurance company as soon as possible to protect your interests.

Negligent Entrustment: If you knowingly allow someone unfit to drive—such as an unlicensed driver, someone with a suspended license, or someone under the influence—to drive your car and they get into an accident, you could be held liable for damages under California law. This is known as negligent entrustment, and it can expose you to significant financial risk, including potential medical expenses for injuries caused. Insurance companies may also deny coverage in these situations, leaving you responsible for covering damages out of pocket.

Each of these scenarios highlights the importance of understanding who is driving your car and under what circumstances. Always verify that anyone borrowing your vehicle has a valid driver’s license and is capable of driving safely. If you find yourself facing a challenging situation after an accident involving someone else driving your car, consult with a car accident attorney to review your insurance details and determine the best course of action to protect your rights and financial well-being.

When the Other Driver Doesn’t Have Insurance

It is strongly recommended that drivers carry uninsured/underinsured motorist (UMC/UIM) coverage, but because it is not required, many drivers do not have this type of coverage. UMC/UIM coverage is an added and optional benefit that pays for an accident when the other driver is at fault but doesn’t have car insurance or when your damages exceed the limits of their coverage. UMC/UIM coverage can also be used if you or someone else driving your car is the victim of a hit-and-run.

If you have it, your insurance company should cover the costs associated with the accident, including financial compensation for your losses and medical expenses. However, if you don’t have this optional coverage, you may still be able to recover some of the damages caused by the accident by pursuing a claim against the other party. In California, which is an at-fault state, the at-fault parties are responsible for damages, and their insurance is typically the primary source of compensation. If insurance is insufficient, you may need to take legal action to hold the at-fault parties accountable and recover the compensation you deserve. Seeking legal help from a law firm can assist you in navigating these claims and ensuring you obtain the financial compensation and support you need.

Contact a Car Accident Attorney in California

In most cases, your friend or family member who drives your car will be covered by your car insurance if they are in an accident. If someone else drives your car and gets into a motor vehicle accident, your insurance policy typically follows the vehicle, and you may be responsible for accidents caused by that driver, especially if you gave them permission. When another driver is at fault, that person’s car insurance should cover the damages caused by the accident. Despite this seemingly simple explanation, dealing with a car insurance company after an accident can be difficult. If you are dealing with an insurer who refuses to offer a fair settlement amount or have other questions about your car accident case, it is important to establish an attorney-client relationship with a qualified personal injury attorney to schedule a free consultation.