Am I Responsible if My Friend Gets Into an Accident With My Car?

There are many situations where one person may allow another individual to borrow and drive their vehicle. Maybe a family member has come to visit from out of town, and they rely on the borrowed vehicle to explore the area. Perhaps a neighbor got into a car crash and wants to borrow a spare vehicle until theirs is out of the shop.

Allowing someone else to use a vehicle can be a kind gesture, but it can potentially have financial consequences. There may be issues with liability if a crash occurs. What happens if someone who borrows a vehicle gets into a wreck while driving that borrowed vehicle?

The Owner’s Policy May Pay

Texas requires several different types of car insurance. Basic liability coverage mandated under state law covers the vehicle regardless of who is driving. As long as the person at the wheel had permission to operate the vehicle, the liability coverage of the actual owner may pay for any crash caused by someone operating the insured vehicle.

The vehicle’s owner provides the coverage that may pay for property damage liability and injury-related expenses for the parties involved in the collision if the person driving their vehicle was at fault. However, no-fault personal injury protection coverage and other forms of supplemental insurance may follow the driver, not the vehicle.

Especially in scenarios where the person borrowing the vehicle is at fault for a crash, they may not have any available coverage to pay for their medical treatment. That being said, actual legal liability relates to responsibility for causing the crash, not simply owning and insuring a vehicle. If the other party involved in the incident intends to pursue a personal injury lawsuit, the party held accountable should typically be the driver who caused the collision, not necessarily the owner of the vehicle.

Claims related to crashes caused by other drivers can increase what a motorist pays for insurance and lead to other legal and financial complications. Vehicle owners need to consider the risks carefully before letting someone else drive a vehicle. Understanding what insurance applies in a car crash involving a borrowed car is important. Generous vehicle owners may unintentionally put themselves at financial risk by sharing their good fortune with others.