Q.
I was driving a car owned by a friend when I got into a car accident, injuring someone in another car.
Who is responsible for this accident: me, the driver, or my friend, the car owner?
A.
If the person driving your car has your permission and causes an accident,
the liability for compensation for the accident is primarily the owner of the car.
This is known as the 'permissive driver' rule.
In the above example, if you borrowed your friend's car and caused an accident,
your friend's insurance, as the owner of the car, is the first insurance to pay for the damages,
and the driver's insurance is the second insurance to pay for the damages, so if the car owner does not have insurance or
cannot pay for the damages, the driver's insurance will take over the responsibility.
For example, if the car owner has liability insurance of up to $30,000, and the permitted driver has liability insurance of up to $100,000,
and the total compensation amount for the injured driver is set at $50,000.
In this case, the car owner's first liability insurance will pay up to the $30,000 limit, and
the permitted driver's second liability insurance will pay the difference of $20,000.
If the total amount of the driver's compensation for the damaged vehicle is $20,000, the car owner's insurance will pay the entire amount because
the car owner's insurance has a $30,000 limit, and the insurance of the permitted driver will not pay anything.
Here, permission to use a vehicle includes situations where the driver has a reasonable belief that the owner will allow him to use the vehicle .
For example, if a friend regularly borrows your minivan to move large items,
he may be a “permitted driver” even if he never actually asked to borrow your minivan.
Permission must also be given by the owner of the vehicle.
If a driver who has been permitted to use the car by the owner allows his other friend “C” to drive the owner’s sports car and
“C” causes an accident, “C” will not be entitled to the car owner’s ‘permitted driver’ insurance benefits.
Of course, if someone takes your car without permission (car theft, etc.), the owner's insurance will not cover the damage, and
the driver's insurance will be liable for the damage.
So if you're going to be driving someone else's vehicle, you should definitely check the following:
- Whether you have permission to drive from the owner of the vehicle
- Whether the vehicle you plan to drive is covered by auto insurance
- Whether you are not listed as an 'excluded driver' in the car owner's vehicle
( if the car owner listed you as an 'excluded driver' when applying for insurance, for reasons such as a history of frequent accidents , you will not be eligible for the car owner's 'permitted driver' insurance benefits.)
Please note that there may be situations where the car owner's insurance company refuses to pay compensation to an authorized driver.
If the “permitted driver” lives in the same house as the owner and is not listed as a driver on the owner’s insurance,
the insurance company may deny coverage. When you apply for auto insurance, the insurance company
will ask for the names of all the people living in the house who will be driving the car. If you do not provide these names, the insurance company may consider this a misrepresentation and may deny coverage for the permitted driver.
(If you find yourself in this situation, you should consult an attorney immediately.)
In conclusion, if a driver drives with the permission of the car owner, the owner's insurance will pay for the injury.
Therefore, you need to be very careful when letting someone else drive your car.
If a driver causes an accident while driving your car, your insurance will be liable for the damages, which will
ultimately increase your premiums.
Even if you weren't driving at the time of the accident.
Q.
I was driving a car owned by a friend when I got into a car accident, injuring someone in another car.
Who is responsible for this accident: me, the driver, or my friend, the car owner?
A.
If the person driving your car has your permission and causes an accident,
the liability for compensation for the accident is primarily the owner of the car.
This is known as the 'permissive driver' rule.
In the above example, if you borrowed your friend's car and caused an accident,
your friend's insurance, as the owner of the car, is the first insurance to pay for the damages,
and the driver's insurance is the second insurance to pay for the damages, so if the car owner does not have insurance or
cannot pay for the damages, the driver's insurance will take over the responsibility.
For example, if the car owner has liability insurance of up to $30,000, and the permitted driver has liability insurance of up to $100,000,
and the total compensation amount for the injured driver is set at $50,000.
In this case, the car owner's first liability insurance will pay up to the $30,000 limit, and
the permitted driver's second liability insurance will pay the difference of $20,000.
If the total amount of the driver's compensation for the damaged vehicle is $20,000, the car owner's insurance will pay the entire amount because
the car owner's insurance has a $30,000 limit, and the insurance of the permitted driver will not pay anything.
Here, permission to use a vehicle includes situations where the driver has a reasonable belief that the owner will allow him to use the vehicle .
For example, if a friend regularly borrows your minivan to move large items,
he may be a “permitted driver” even if he never actually asked to borrow your minivan.
Permission must also be given by the owner of the vehicle.
If a driver who has been permitted to use the car by the owner allows his other friend “C” to drive the owner’s sports car and
“C” causes an accident, “C” will not be entitled to the car owner’s ‘permitted driver’ insurance benefits.
Of course, if someone takes your car without permission (car theft, etc.), the owner's insurance will not cover the damage, and
the driver's insurance will be liable for the damage.
So if you're going to be driving someone else's vehicle, you should definitely check the following:
( if the car owner listed you as an 'excluded driver' when applying for insurance, for reasons such as a history of frequent accidents , you will not be eligible for the car owner's 'permitted driver' insurance benefits.)
Please note that there may be situations where the car owner's insurance company refuses to pay compensation to an authorized driver.
If the “permitted driver” lives in the same house as the owner and is not listed as a driver on the owner’s insurance,
the insurance company may deny coverage. When you apply for auto insurance, the insurance company
will ask for the names of all the people living in the house who will be driving the car. If you do not provide these names, the insurance company may consider this a misrepresentation and may deny coverage for the permitted driver.
(If you find yourself in this situation, you should consult an attorney immediately.)
In conclusion, if a driver drives with the permission of the car owner, the owner's insurance will pay for the injury.
Therefore, you need to be very careful when letting someone else drive your car.
If a driver causes an accident while driving your car, your insurance will be liable for the damages, which will
ultimately increase your premiums.
Even if you weren't driving at the time of the accident.