Who Is Liable When You Loan Your Car?

Who Is Liable When You Loan Your Car?

Most auto insurance policies cover you and your vehicle. So, if your car is in an accident while being hell bent by another person, your insurance will cover the damages as long as you gave the other driver permission to use the vehicle.
If you loan your car to a schoolmate who has insurance and he crashes your car, do not assume that his car insurance will pay for damages. Your insurance will pay and you’ll have to pay your deductible.
Conversely, if you borrow a vehicle from a friend, you are borrowing their insurance as well. If you borrow an uninsured car, you are liable for any consequences that issue from this. However, owners aren’t responsible if their car is used without permission.
If you loan your car and that person causes an accident that impression in serious corporal injury as well as property damage and the assessed damages exceed the limits of your insurance, you can be in authority liable.
Here’s another wrinkle; if you frequently loan your car to the same person and they are not on your owner’s policy, your insurance company may gawk this as a non - recognition of the vehicles usage. In the case of an accident they could deny coverage for this unregistered driver so always be upfront about including additional drivers on your policy.
You should never hand over your car to an uninsured person over if the damages exceed your policy limits, the injured cheer can come after you for medical and property - maraud expenses. To recover damages, the courts can interlace personal capital, congenerous as your home.
Furthermore, if the element you furnish your vehicle to causes an accident thanks to of negligence or if they had a suspended license, you could be liable for any criminal charges and costs they incur.
If somebody uses your car without your permission or knowledge and causes an accident, you won’t be liable for the damages. Their insurance will pay. If they don’t have insurance, you’ll need your collision coverage to pay the cost of repairing your vehicle. Keep in mind that insurance companies will always assume that anyone driving your car is background so with your permission. It will be your job to prove opposed.
If your car is stolen and crashed, you won’t be liable for damages to the car or the costs of any personal injuries. But you have to assume that anyone larceny a car is not scene to have auto insurance, so you’ll have to use your collision coverage to repair your vehicle. Lined up if the thief has insurance, his company won’t pay for a criminal act.