What Happens if Someone Else is Driving My Car and Gets in an Accident?
Accidents can be stressful, especially when someone else happens to be behind the wheel of your car. Most people don’t know enough about their insurance policy to act in their best interest in this slightly unusual situation.
In this article, we’ll go over what happens when someone else is driving your car and gets in an accident. We’ll cover liability, legal steps, insurance, and much more to help you tackle this challenge confidently.
What Happens if Someone Else Gets Into an Accident While Driving Your Car?
When someone else drives your car and is involved in an accident, the first step is to notify insurance companies. If the accident involves another driver, typically, both parties will contact their insurers. After this, an assessment begins.
Insurers will be looking at damages and other accident details to determine liability. The outcome of the fault assessment will directly influence how the claims are settled (i.e., who pays for the damages).
The accident may also impact your vehicle’s status, as it will be evaluated for repairs or declared a total loss if the damage exceeds market value.
And here you might be wondering if there’s anything you can do to ensure a smooth claims process. Well, maintaining thorough documentation can certainly help.
Take photos, collect accident reports, and hold on to insurance communication. The more “evidence” you present, the stronger your case becomes.
Will My Insurance Cover the Accident?
Among different types of insurance, liability or collision coverage will likely apply if someone gets in an accident in your car. Notably, this coverage applies as long as the driver has your permission to use the vehicle.
Liability vs. Collision
Let’s first define the difference between these two insurance types. Liability covers damages and injuries that the driver may cause to others, including medical expenses and property damage. In this situation, your liability insurance protects you by covering the other party’s losses if the driver is at fault.
Collision insurance covers damages to your vehicle from a collision, subject to policy terms. However, it may not apply if the driver is excluded from your policy, not covered under it, or if they were using the car without your consent (known as nonpermissive use, which we’ll cover in more detail in a dedicated section).
How Insurers Protect Themselves
Certain policies have provisions that limit coverage levels for permissive drivers or exclude certain drivers altogether. Why do they do this? By creating these limits, insurers protect themselves from claims and ensure that policyholders remain within their intended risk bracket.
Since insurance companies generally expect the primary insured driver to be the “main” user of the vehicle, this approach encourages caution. Policyholders become more aware when lending their car to a third party.
Check with your insurance provider for more specific details about coverage.
What Is Permissive vs. Nonpermissive Use of My Vehicle?
Permissive use occurs when you give someone explicit or implicit permission to drive your vehicle. This includes family members, friends, or anyone you trust with your car.
Your insurance policy generally covers permissive use, although coverage may be limited to liability only. If the third-party driver has their own insurance, their policy might provide secondary coverage, which could help cover damage costs.
Conversely, nonpermissive use refers to situations where the driver does not have your permission to use your vehicle. This could involve someone who takes your car without your knowledge or someone purposefully excluded from your insurance policy.
As mentioned above, your insurance may not cover the accident under nonpermissive use. This means that potentially, a driver may be left responsible for any damages from the accident.
Exceptions may apply if state law requires the insurance company to provide coverage or if your insurer offers specific coverage for nonpermissive use.
In cases of nonpermissive use, your insurance may not cover damages to your vehicle or the unauthorized driver. However, depending on state laws, it may still be required to cover liability to third parties injured or whose property is damaged in the accident.
If Someone Gets in an Accident in My Car, Am I Liable for the Damages?
Liability generally depends on who is at fault in the accident. If the driver of your car is at fault, they are primarily liable. However, as the vehicle owner, you could be liable under certain circumstances, such as negligent entrustment (e.g., lending your car to an unfit driver).
Liability is determined by factors such as who is at fault, whether the driver had permission, as well as the extent of the damages. If the driver was acting within the scope of their permission (permissive use), your insurance policy typically covers the damages. This would make you indirectly liable.
If the driver was negligent or engaged in illegal activities (like driving under the influence), you could still face liability issues.
In most cases, the vehicle owner's insurance policy is primary and will cover damages when someone else drives the car with permission. The driver's insurance may serve as secondary coverage.
Note: To understand the extent of your liability, be sure to relay all details of your accident to your insurance provider. We also recommend seeking out a legal expert.
Insurance Aside, Can I Ever Be Legally Liable for Another Person’s Driving?
Beyond insurance coverage, there are scenarios where you could be legally liable for another person’s driving. These situations might look like:
- If you employ someone who uses your vehicle for work purposes, you might be held liable for their actions while driving.
- If you knowingly allow someone unfit to drive (due to lack of a license, poor driving record, or impairment) to use your vehicle.
- In some jurisdictions, parents can be held liable for accidents caused by their minor children while driving their car.
- If the vehicle is co-owned, both parties might share liability for an accident.
Note that insurance regulations and liability laws vary by state. For example, some states are "no-fault" states, while others are "at-fault." Additionally, state laws may dictate minimum coverage requirements and specific rules about nonpermissive use.
What Steps Should I Take Immediately After the Accident?
In the aftermath of an accident, there are specific steps you should follow to ensure legal compliance and protect your interest. These are the same as if you were driving the car:
- Assess if anyone involved in the accident is injured and call emergency services if medical assistance is needed.
- Call the police to report the accident. An official report is often required for insurance claims and legal purposes.
- Exchange names, phone numbers, and addresses with the other driver(s) involved.
- Provide and obtain insurance policy numbers and the names of insurance companies for all parties involved.
- Capture images of the accident scene, including vehicle damages, license plates, and anything else you deem relevant.
- Contact your insurance provider as soon as possible to inform them about the accident.
Will My Insurance Go Up If Someone Else Crashes My Car?
Insurance companies primarily consider the claims history associated with the policy. If a claim is made under your policy because someone else crashed your car, your premiums could increase regardless of who was driving.
If the other driver is not typically covered under your policy or if they have a poor driving record, your insurer might view the accident as a higher risk. This means that your premiums will likely increase.
Additionally, frequent claims or damages can also contribute to higher rates. To mitigate these potential increases, you can proactively ensure that anyone who may drive your car is responsible and possibly listed on your policy.
Does It Matter if the Driver Is a Family Member or a Friend?
The relationship between you and the driver can indeed influence how the accident is handled. Though it does not fundamentally change coverage or liability, insurers might consider factors such as:
- the driver’s age
- relationship to you
- driving history
- frequency of this person using your vehicle
Family
For family members, especially minors, there might be additional considerations or protections under certain state laws. Parental liability laws hold parents responsible for accidents caused by their underage children while driving a family vehicle.
This means that you could be held liable for an accident your child was involved in, even if you weren’t directly at fault. Plus, insurance policies often impose higher premiums or require specific coverage when minors are authorized to drive.
This reflects a wider outlook insurance companies have towards younger, less experienced drivers. So, if your underage child frequently drives your car, you might want to invest in a safety training class.
Friends
When an insurance company creates your policy, it bases coverage and costs on your personal driving history, not on other people who might drive your car. So, when friends borrow your car, insurers may assess the situation differently.
Prior accidents, traffic violations, and other details of your friend’s driving record will all be taken into account. If insurers determine that your friend is a high-risk driver, this may lead to increased premiums for you or potential coverage issues.
Moving forward, insurers may limit coverage or add conditions for accidents involving someone else driving your car. This helps them control unexpected costs and risks they didn’t factor prior into your policy.
In the end, insurance companies are more concerned with whether the driver is a named insured or a permissive user than their relationship with you. The key factors are permission and the driver's insurance status, not whether they are a friend or family member.
Regardless of the relationship, you should always strive for open communication with your insurance provider. Tell them clearly who is authorized to drive your car and ensure that all drivers are adequately covered under your policy.
Conclusion
A wreck is an emotionally draining experience for everyone involved, and there’s no way around that. However, you can take steps to make it a little easier. We hope our advice on what to do when someone else crashes your car will help.
