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 dogged 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 well-wisher 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 countryman, you are borrowing their insurance as well. If you borrow an uninsured car, you are liable for any consequences that proceeds 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 influence in serious undoubted injury as well as property damage and the assessed damages exceed the limits of your insurance, you can be chargeable 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 peep this as a non - news flash 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 replenish your car to an uninsured person since if the damages exceed your policy limits, the injured carousal can come after you for medical and property - annul expenses. To recover damages, the courts can append personal reserves, homologous as your home.
Furthermore, if the phenomenon you impart your vehicle to causes an accident because 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 contact so with your permission. It will be your job to prove distant.
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 burglary a car is not bit to have auto insurance, so you’ll have to use your collision coverage to repair your vehicle. In line if the thief has insurance, his company won’t pay for a criminal act.