Borrowing a friend’s or family member’s car may seem harmless until an accident happens. One of the most common questions after a crash involving a borrowed vehicle is who is financially responsible? In California, liability in borrowed-car accidents is governed by a combination of vehicle ownership laws, insurance statutes, and fault principles and understanding how it works is the first step to figuring out who is responsible for damages.
Does Insurance Follow the Car or the Driver in California?
In most situations, insurance follows the vehicle and not the driver as per California Insurance Code § 11580.1, which requires auto insurance policies to cover permissive users, meaning people who are driving the vehicle with the owner’s permission. What this means is that if you borrow a car with permission and cause an accident, the owner’s insurance is usually the first policy that applies.
Why Car Owners Can Still Be on the Hook
Even if the owner wasn’t driving, California law allows injured parties to pursue the vehicle owner. This is due to California Vehicle Code 17150, which holds every car owner accountable for any injury, death, or damage to a property if their car was used and was given permission to be used. However, it is important to note that owner liability is typically capped unless additional negligence is involved.
What If the Driver Did NOT Have Permission?
If the driver did not have permission to use a car, then the owner’s insurance may deny coverage for the accident in question, and the driver may be fully liable for all damages that were caused. Additionally, insurance companies will frequently dispute whether permission existed, which makes having legal representation important in these types of situations.
Who Pays If the Borrowed Driver Is at Fault?
If the car accident was caused by the borrowed driver, then payment for damages is typically gone through by the following orderL
Vehicle Owner’s Insurance (Primary Coverage)
Driver’s Insurance (Secondary Coverage)
Personal Liability Exposure (Only if insurance coverage is insufficient or denied and the borrowed driver may be personally responsible for remaining damages.)
What If the Other Driver Was at Fault?
If another driver caused the accident, their insurance is typically responsible, regardless of who owns the borrowed vehicle. However, if the at-fault driver is uninsured or underinsured, coverage may come from the vehicle owner’s UM/UIM policy or the borrowed driver’s UM/UIM policy. It is important to note that in these situations, coverage disputes are very common.
Injured in a Borrowed Car Accident? Talk to a California Personal Injury Lawyer
If you were injured in an accident involving a borrowed car whether as a driver, passenger, pedestrian, or another motorist, California law may allow you to pursue compensation from multiple sources. As these types of accidents are legally complex, having a reliable personal injury lawyer can make the process smoother and clear up any legal disputes between parties and insurance companies.
At Frank Penney Injury Lawyers, our team of injury attorneys fully understand how complex these cases can be and are readily available to give your case the care and attention that it deserves.
Contact us today at 888-888-0566 or by filling out our online contact form to schedule your free consultation.