What Happens If Someone Else Is Driving My Car and Gets in an Accident?

In 2022, 5,930,496 car crashes were reported to the police [1], and the at-fault driver may not necessarily be the car owner.

Auto insurance coverage may get complicated when a car crash occurs to another person driving your car. Which insurance policy must cover the accident depends on who is at fault, whether that person had permission to use the vehicle, and the specifics of the insurance policy.

If someone else gets into an accident while driving your vehicle, our law firm can assist in determining car insurance coverage and help you seek compensation for damages.

Understanding Liability in a Car Accident

The person who caused the accident is usually legally liable for the damages. In most states, the at-fault driver’s insurance is liable for any damages within their policy limits. This means that if someone were driving without insurance and got into an accident, they would need to pay for any damages out of pocket.

However, insurance follows the vehicle, not the driver. Any accident in a car, no matter who was liable, will trigger an insurance claim as long as that person had permission to drive the vehicle. As such, the policyholder must pay for any damages not covered by their policy.

The Role of Insurance

There is more than one type of car insurance, which means it’s important you understand your auto insurance policy before you let anyone drive your car.

The two main types of car insurance are liability coverage and collision coverage. Liability coverage is mandatory in most states, and there are typically minimum coverage limits you must hold. This type of insurance has two components: bodily injury liability and property damage liability.

Bodily injury liability will pay for another person’s medical bills if you were at fault. In contrast, property damage liability will pay for damage to the other vehicle or the nearby property. If you were hit by someone else, the other driver’s liability insurance must pay for your medical bills or vehicle damage.

Collision coverage allows you to seek reimbursement for motor vehicle repairs or replacement; this is from your insurance policy and does not involve the other driver’s insurance. This can be helpful if the other driver doesn’t have an extensive car insurance policy that will cover all accident costs.

Some states, called no-fault states, require everyone to make an insurance claim on their own auto insurance policy, regardless of who is at fault [2]. These states often also have Personal Injury Protection (PIP), which will pay out no matter who was responsible or how the accident happened.

Additionally, some other types of insurance, such as rental car coverage, are used for specific instances. Primary coverage insurance policies are from the rental company and generally cover some medical expenses and repairs.

Credit card companies may provide secondary coverage you can activate if the rental company did not cover the entire accident claim or your circumstances were excluded, like theft.

When Someone Else is Driving Your Car

In general, car insurance applies to anyone using the vehicle with permission, whether the vehicle owner or someone with a valid driver’s license. This is because the policy is for the vehicle rather than an individual.

However, the insurance provider will want to know whether you permitted the at-fault person to drive your car.

Permissive Use

Permissive use is when an individual has explicit permission to use someone else’s car. For example, you may lend your vehicle to a friend whose car is in the shop. Because insurance follows the vehicle, not the driver, your insurance company will generally be responsible.

However, if your policy doesn’t cover all damages, your friend’s insurance company may be considered secondary coverage.

Non-Permissive Use

Non-permissive use is when someone else drives your car without your explicit permission. This may be due to theft or if a family member takes the vehicle when you told them not to. If an accident happens, then the insurance company may refuse to cover the expenses. It would then be your legal responsibility to pay damages,

How Your Car Insurance is Affected

Whether or not you were driving your car at the time of an accident, an accident will impact your auto insurance coverage. This makes it crucial to ask questions of your insurance provider before you take out a policy, such as “What happens if someone else is driving my car and gets in an accident?” or “What does my car insurance cover?”

Your Liability Insurance

A liability policy is intended to pay for personal injury and property damage caused by any person driving your car with permission. There are two factors: bodily injury and property damage.

For example, if someone were using your vehicle and caused a severe accident that broke the other driver’s leg, the liability coverage would pay for this and any damage to the vehicle or the surrounding property.

However, in most states with an at-fault insurance law, it will not pay for injuries to the policyholder or their passengers, and it will also not pay for repairs to your own car.

For example, if your friend was driving and hurt, it will not pay for your friend’s medical bills; you would need additional medical payment coverage to handle this. Medical payment coverage is mandatory in some states but optional in others. If your friend has their own medical payments policy, they may be able to submit a claim for their insurance.

Your Collision Insurance

Collision insurance is meant to cover damage to your own vehicle, no matter who was at fault. If the other driver’s insurance does not provide enough for repairs or replacement, this coverage would make up the difference between the policies.

Collision auto insurance will pay for things like hitting a guardrail or another vehicle. It will usually pay out if your car was hit while parked in a hit-and-run accident.

However, it will not pay for acts of nature, like hail or a tree falling on your vehicle, animal collisions, or theft. You would need comprehensive coverage for these accidents, which is more expensive and covers many issues.

Potential Increase in Auto Insurance Policy Premiums

Unfortunately, your insurance company may raise your premiums after an accident, whether or not you were responsible. This is because your insurance record is linked to your vehicle. As the policyholder, you are liable for any accident caused by your car, even if you were not driving.

You may see your premiums go up even if you were not responsible for the accident and were not driving then. Insurance companies use risk, not blame, to identify whether or not they should raise your premiums. Any claim reported to your insurance will likely result in a premium increase.

However, your premium increase will likely be less if you were not at fault than if you were at fault.

Exceptions and Special Circumstances for Car Accidents

While the at-fault driver’s insurance is generally responsible for damages, there are some circumstances where you may face additional legal challenges. Working with an experienced car accident attorney can help you understand your responsibilities as a policyholder.

Excluded Drivers

If a family member has a bad driving record, you may exclude them from your insurance policy. In this case, your auto insurance will not be responsible for any personal injury claim arising from an accident, as they do not have permission to use your vehicle.

The driver themselves, or their insurance if they have it, would then be responsible for their damages. However, these cases can be complicated, and it is best to consult with an attorney to ensure you will not be accountable for their actions.

The Role of Negligent Entrustment

People driving your car should have a valid license and track record. If you knowingly lend your car to someone else who you know is a reckless or unsafe driver, and they cause serious injuries, you may be liable under the legal concept of negligent entrustment.

This posits you have vicarious liability for anyone using your vehicle, and if they cause injury to another person, you are partially responsible.

Accidents Involving Minors

Minors are held to the same legal standard as adults regarding safe driving. Insurance coverage is also for anyone with permission to drive the vehicle, regardless of age. This means that if your child gets into an accident in your car, your insurance must cover it.

When the minor was intentionally reckless while driving, their parents may be held responsible for the accident, mainly if the teenager had permission to drive the family car. This can include being sued for damages.

It’s important to note that insurance companies consider teenagers and young adults to be risky drivers regardless of their specific track record; as such, adding any teen to an insurance policy will cause additional premiums.

Steps to Take After the Accident

It’s essential to act quickly after a car accident to ensure you can get coverage. Ensure that anyone driving your car knows what to do in a crash.

Gather Information at the Scene

The driver should stay at the accident scene and call the police as soon as possible, even if there are no injuries. They should then gather contact details and insurance information for all other drivers present.

They should take photos of the vehicle’s damage and any injuries that may have occurred. The reporting officer should give the driver the case number, which they should include in the insurance report.

Notify Your Insurance Company

You should notify your insurance company as soon as possible, providing detailed information about how the accident happened, who was driving, and where it occurred. They will send you forms to fill out so you can provide further details about the accident.

Consult with an Attorney

A good Chicago personal injury lawyer can assist you with any liability, insurance coverage, or injury claims questions. Through our attorney-client relationship, we can represent your interests during negotiations with the other driver or the insurance company, ensuring that everything is covered.

We will also review your car insurance policy to identify what can be covered so you do not have to pay anything out-of-pocket you don’t have to.

Consult an Experienced Attorney Today!

Insurance coverage can be complex when someone else uses your vehicle, even with permission. There are different types of car insurance, the most important ones being liability and collision coverage.

Vehicle coverage is generally for the car itself, not the individual policyholder. Any accident, regardless of who was driving, may lead to an insurance claim. As the vehicle’s owner, you may be responsible for any additional damages that insurance does not cover.

Whether your insurance will pay depends on whether the person has explicit permission to use your car, their age, and their driving record. Insurance may be allowed to refuse coverage if the accident was caused by someone not supposed to be driving a car or if they believe you negligently entrusted the vehicle to a person with a track record of risky driving.

Our dedicated Chicago auto accident lawyers are here to answer your questions about insurance after an accident. Contact us at (888) 424-5757 or use our online contact form for a free consultation about your legal rights and obligations.

Resources: [1] Forbes, [2] Liberty Mutual

All content undergoes thorough legal review by experienced attorneys, including Jonathan Rosenfeld. With 25 years of experience in personal injury law and over 100 years of combined legal expertise within our team, we ensure that every article is legally accurate, compliant, and reflects current legal standards.