Who Is Liable for Damages in a Car Accident if the Driver Is not the Vehicle Owner?

Posted on by liljegrenlaw

When a car accident happens, the owner of a vehicle may assume the person driving his or her car is at fault for any damage. However, the driver may say the owner is responsible. These cases are often taken to court over the question of liability.

Insurance and Permissive Use

When an individual purchases a car, he or she must have insurance. A general rule is that insurance on a vehicle covers everyone living in the household, unless they have been specifically excluded. In fact, listing other residents is typically required when applying. Friends and relatives living outside of the house are not included in this general understanding, but there is a rule of permissive use.

When an individual loans out his or her car, there is an understanding that the owner of the vehicle gave permission to the driver. In this case, the driver is covered by the insurance of the owner of the vehicle. Any insurance owned by the friend driving the vehicle is secondary. If the friend is at fault in an accident, the car owner would have to file the claim with the company, pay the deductible, and accept rising insurance rates.

Even though the owner was not driving, he or she faces a likely penalty. Insurance companies still have to pay out from their policies, and they need to recoup their losses. If the damage exceeds the coverage of the car owner, the friend’s policy covers the leftover. If the friend was not at fault, the other driver’s insurance should cover all damage, affecting neither the associate’s nor the car owner’s insurance.

The bottom line is that car insurance applies to the vehicle, not the driver. Policies differ, and it is important that individuals understand their own policies and ask questions. After an accident, it is too late to conduct research and contest the contract.

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Liljegren Law Group can help, Contact our experienced San Diego personal injury Lawyers today for a free consultation.

Related: What To Do if You’ve Been in an Accident Involving an Uninsured Motorist

Responding to a Claim

If the car owner has intentionally excluded a driver from coverage on his or her policy, meaning he or she stated that driver would not operate the vehicle, the car owner’s insurance will not cover any damage that person causes. The proprietor would be responsible for all costs and be held liable.

Similarly, if it is clear a car was used without permission (i.e. theft), the car owner is not liable for damages or injuries to another driver. Reparations to the owner’s vehicle would be covered under the owner’s insurance.

Liljegren Law group also offers services in Temecula, and Escondido. Our Temecula car accident lawyers offer free consultations, schedule an appointment today.