Whose Insurance Covers a Borrowed Car?

Car accidents are a frustrating experience. However, dealing with insurance companies after an accident can be even more frustrating. When a party does not own the car they're driving, claimants may feel lost about who will pay for damages caused by their accident.

Does Car Insurance “Follow” a Car?

Claimants are often confused if an individual or their car is insured. As a rule, the owner of a car will be held liable for any damages caused by another person driving their car. This means that a car is essentially “followed” by the insurance of its owner. However, there are a few situations that an owner will not be held liable for an accident that they did not cause.

If it can be proven that a person did not have permission to drive a car, or if they stole the vehicle, then the owner of that car may not be held liable for the accident. Permission to drive a car includes written permission, verbal permission, and implied permission. An individual has implied permission if they use another person’s car with the owner's knowledge without being stopped.

Special Circumstances

Some insurance claims involving borrowed vehicles can have unique circumstances. For example, if the person was driving a car with permission and caused an accident that the owner’s insurance does not completely cover, then the person who was driving may have their insurance cover the remaining costs. However, the driver must have an insurance policy that covers borrowed vehicles. If an insurance policy explicitly states that certain members of a household are not covered, then the owner of the car will likely be required to pay for all damages with their own money.

What to Do After an Accident

If you have been injured by a driver who was borrowing a car, compensation for your troubles is always possible. However, insurance policies are difficult to navigate, and you will require the help of an experienced car accident attorney. Insurers purposely make policies hard to understand and will attempt to preserve their profits when someone tries to make a claim. Having an experienced attorney on your side will help you obtain the coverage that you deserve.

Contact our car accident attorneys today at (888) 493-1629 for a free consultation of your case. We have won billions for clients just like you!