What Happens To Your Insurance If Someone Borrows Your Vehicle?

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If you lend your car to a relative or family member there is a possibility that they could be involved in a car crash. If this happens it is crucial to be aware of whether you could be held accountable for the injuries. Many aspects could affect liability as well as the amount you pay out to pay for the damage.

Sigman Janssen explains these aspects in more detail below. the things you should be aware of when you choose to lend your car. We’ve helped numerous injured victims obtain maximum compensation and secured millions of dollars for our clients. This includes the $2.5 settlement million for a teenager injured in a traffic accident. Initial consultations with an attorney from our team are completely free and confidential.

When you lend someone your vehicle in return, you are also lending the person your insurance policy for the car. This is because the majority of insurance policies are based on the vehicle and not the driver.

In the event of an accident, your insurance policy would serve as your primary insurance. This applies regardless of whether the driver is covered by insurance. If you allow a friend to use your car, and the borrower causes accidents, your car insurer is accountable for any damages towards the motorist as well as their passengers in the amount that is within the bounds that your insurance policy allows. If the damage is greater than the policy’s limits and your insurance policy is not sufficient, the friend’s insurance will be considered secondary protection.

If the other driver is not at fault for the incident The insurance of the other driver is expected to compensate the damages incurred. This is the normal procedure in insurance states that have at-fault policies.

Auto Insurance Coverage and Permissive Use

In general, everyone within your household is protected by your insurance policy. This can also apply to those who borrow your vehicle and you give permission to the borrower. This conforms with the law of the state. Permissive use refers to the giving of a family member or friend member the right to drive your vehicle. In some cases, the adult member of your household could grant his or her permission to drive your vehicle and be covered under your insurance.

If you loan your vehicle to a roommate, friend, or neighbor, or to someone who is not covered by your insurance policy, they’d be covered even if they drove your car frequently but not regularly. If not, the person is a person to add to your coverage.

This is why it’s crucial to understand what is covered by your policy and your responsibility if you loan your vehicle to someone. If you’re still not certain about the conditions of your policy following an accident, it’s advised to consult with the expertise of a lawyer. will examine your insurance coverage for autos and provide you with options.

What If My Car Was Taken Without Consent?

It’s considered as non-permissive usage. It could be difficult to show that you didn’t give a family member or friend member permission to use your vehicle. If there is no evidence that you refused permission and your insurance provider will conclude that you granted permission.

In certain situations, there are situations where you will not be liable for damage when your vehicle was stolen and then involved in an accident. In other cases, someone borrowed your vehicle without authorization which caused an incident or you removed someone in your family from your insurance coverage and they take your vehicle regardless.

Protecting Yourself When Lending Out Your Car

It’s always risky when you lend your car to an individual, however, there are steps you can do to ensure your safety. Take extra care and ensure that the person borrowing your vehicle has an active driver’s license and is aware of the responsibilities of driving in the roadway.

It is important to trust someone who will drive your car. is also crucial. If you are aware that a relative or friend member may be dangerous or reckless in the roadways as a driver, you might consider rethinking giving your keys to them. If you are negligent in entrusting an individual to drive your car (they are an unlicensed or inexperienced driver, or are intoxicated by alcohol or drugs) or alcohol), you could be personally responsible for the reckless entrustment.

It is also important that you have a copy of the registration of your car and insurance details in your glove box. Also, inform the person who is driving your vehicle to know where it is.

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The authorized Green Bay car accident lawyers can answer your legal queries. It is also possible to discuss your options if you loaned your vehicle to someone else and they caused an accident. We will find out if you are entitled to a claim through a free consultation, without obligation.

If we decide to take on your case, we will be no charges to start the process and no costs as we take with you on the case. We are only paid for our legal work if we can help you in obtaining compensation on behalf of you.