What happens if you loan your car to a friend and they get in an accident? Are you personally responsible or will your insurance get involved? Check out this quick video from Brother Rutter to learn more.
“So, you lent your car to a friend and they wrecked it. What’s your responsibility? We get calls like that all the time. The first thing is, you have to tell your insurance company. Whether you were in the car or you gave them the keys and let them drive, your insurance is still going to be involved. But you, your bank account, and your assets probably aren’t going to be involved at all. But the insurance follows the car. They’ll have access to your insurance because its called a “permissive user.”
If somebody stole your car, your insurance would not be involved, and of course you wouldn’t be involved. But if you let them use it, if you permit them to, then your insurance is involved in the case.
Now, there is one exception to you being off the hook. And that is called negligent entrustment. If you entrust your car to somebody that you know shouldn’t be driving, you can personally be liable. That would be a situation where you gave your keys to someone and you knew they were drunk, and they went out and got in a wreck and hurt somebody. But you wouldn’t do that. Don’t do that. But just know that your insurance does follow the car. So, if you’ve loaned your car, you’ve loaned your insurance. Thanks.”