What Happens if Someone Wrecks Your Car and They Aren’t on Your Insurance?

By John DiBartolo on March 15, 2024

Car accidents are always upsetting, but imagine this situation: You allowed a friend or relative to borrow your car, and then an accident occurred. Now you have a totaled car and many legal and insurance questions. This is a common problem that many car owners deal with every day. In this article, we will review what happens if someone wrecks your car and is not listed on your car insurance.

If you have questions about a car accident claim and car insurance, the Law Offices of John P. DiBartolo, Jr., can assist you. Attorney DiBartolo has over 28 years of experience in all types of car accident claims and can help you recover damages for your losses, such as property damage, medical bills, and lost wages.

Auto Insurance Usually Follows The Car, Not The Driver

First, remember that your car insurance policy usually follows the car, not the driver. So, if you let your friend or relative borrow your vehicle, your own auto insurance policy will usually cover any damages. For example, if your friend crashes your car and is the at-fault driver, your policy’s collision coverage usually pays for damage to your vehicle. If you do not carry collision coverage, you should talk to your insurance agent about adding it. Your liability insurance covers injuries or damages to another driver when an accident occurs.

The Friend’s Insurance Coverage Is Likely Secondary

Your friend’s car insurance is usually deemed secondary coverage when they drive your car and have an accident. If the accident reaches your policy limits, the other policy will pay the rest of the damages. But not every insurance provider is the same; for example, some car insurance policies have exclusions for uncovered drivers when someone else crashes the vehicle. Some insurance providers may even have an excluded driver in your household for coverage unless the person is listed on the policy. This is usually called a step-down policy, one of the least expensive liability insurance policies.

The At-Fault Driver May Be Liable

Furthermore, you may not even be liable in the insurance claim for injuries or damages stemming from an accident when someone else crashes your vehicle. If the driver of your car was not legally responsible for causing the collision, the other driver may be liable for medical expenses, property damage, and more.

What Is Permissive and Non-Permissive Use?

Permissive vs. non-permissive use is an important concept to know when someone wrecks your car and is not listed on your insurance. “Permissive use” means that a person has your express or implied permission to drive the vehicle.

But what if the person borrowed the vehicle without your permission and crashed your car, which is non-permissive use? Sometimes, the auto insurance for the person driving will be the primary coverage. But if the person does not have auto insurance, you might need to use your auto insurance policy for bodily injury and other financial responsibility.

It is important that you accurately update your insurance coverage. If someone has regular use of your vehicle but is not listed on your policy, you run the risk of a denial of coverage. It is important to speak with an attorney to make sure that you are properly insured BEFORE an accident occurs.

How Do You Prove You Had Permission To Drive The Car?

Most of this article relates to your friend borrowing your car. But if you borrowed your friend’s car, proving you had permissive use may be important but it may be challenging to prove that you had permission. If you can’t prove you had permission, you could end up paying for some of the damages using your policy. You almost certainly would be liable for damages if you had non-permissive use of the person’s car and didn’t have a driver’s license or drove drunk.

What If The Car Accident Caused Minor Damages?

If you loaned your car to a friend, and they caused minor damages to it when driving your car, then in most circumstances, your auto insurance will cover damage to the vehicle. Even when the person has insurance coverage, the insurance claim would be made under your collision coverage. This also means you may need to pay your insurance deductible, increasing your insurance company rates.

What If Your Friend Causes Severe Damages?

Suppose the auto accident your friend caused resulted in severe injuries and property damage. In that case, your insurance liability coverage will be in effect. Liability insurance pays for the damages your friend caused if they caused injury and damages to others and their property. Your liability insurance from the insurance company should protect you if someone sues you after your friend crashes your car.

Most states require liability insurance, but the insurance company minimums vary. Much depends on the state’s rules and the insurance company’s rules. If damages exceed your liability insurance limits, the court could seize your assets to pay the rest of the damages. If your liability policy is insufficient to cover the damages your friend caused when they crashed your car, the friend’s policy may be secondary coverage.

What Do You Do If Someone Crashes Your Car?

After a friend borrows your car and crashes it, you need to act fast. Depending on the state, you may have only two or three years from the crash date to file a lawsuit. Collecting evidence for a car accident lawsuit takes time and the months can pass quickly.

First, you should call an experienced car accident attorney to review the case. If the accident wasn’t your friend’s fault, the attorney can help you obtain compensation for property damages. The at-fault driver should be liable for damages even if you weren’t in the car. Your attorney can also handle the negotiations with any insurance company involved. If necessary, the car accident attorney can represent your interests in a lawsuit if insurance negotiations break down.

What To Do After A Car Accident

If you were in the car during the accident, there are several things you should do:

• See if anyone is injured and dial 911.
• Wait for the police to arrive. Don’t leave the crash scene until law enforcement says you can.
• Obtain the contact information for all the drivers involved and any eyewitnesses.
• It is critical to document the accident. Take photos and video of accident damage, injuries, and vehicle positions.
• Call the insurance company as soon as possible and report the accident. In most cases, your liability coverage will cover the accident.
• Get a copy of the police report for your car accident attorney.
• Any injured parties should get immediate medical attention. Delaying medical treatment can lead to problems with the injured person’s health and a subsequent claim or lawsuit.

Speak To A Car Accident Attorney Today

Allowing someone to borrow your car who then gets in an accident can be highly stressful and upsetting. Who will be held responsible depends on the case, but your auto insurance will generally be the primary coverage. If the friend driving your car isn’t on your insurance, you might not know what to do but don’t worry. The Law Offices of John P. DiBartolo, Jr. can explain your auto insurance and insurance policy options. Our attorneys can also deal with your insurance company and take that stress off your shoulders.

About Attorney John P. DiBartolo, Jr.

Attorney DiBartolo is a frequent lecturer for the Massachusetts Bar Association and the Massachusetts Academy of Trial Attorneys. He and his associate attorney have a long list of impressive car accident client testimonials. You can count on them for solid legal representation. For a complimentary legal consultation, please call (413) 529-2955.