Transcript

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 are not going to be involved at all, but the insurance follows the car.

They’ll have access to your insurance because it’s 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 lend your car you’ve loaned your insurance.

Thanks.