Letting your friend, family, or coworker borrow your car may seem harmless at first – but how will liability and insurance work out if they get into an accident? In this blog, we take a look at this frequently asked question as an experienced New York City auto accident attorney and through this post, provide an insightful answer that helps you understand your rights and liabilities.
Is the car owner liable for the accident?
In New York, even if the accident occurs when someone is driving a car that they have legally borrowed, the insurance that steps in to compensate for injuries and damages will be that of the car owner, not the person driving the vehicle. This is because New York insurance law follows the principle of permissive use. This means that if you give someone permission to borrow your vehicle, it is your auto insurance that becomes the primary coverage in the event of an accident. This will be the case, even if you were not in the vehicle at the time the accident took place.
For instance, if the borrower has injured a person in the accident, the car owner’s liability insurance is what covers the damages sustained by the victim. Any repairs to the vehicle can be covered under the car owner’s collision coverage, provided they had obtained such a coverage beforehand. Unfortunately, such an accident may cause your insurance premiums to go up as well.
Will the driver’s insurance cover apply for the accident?
As we mentioned above, the car owner’s insurance cover will be considered the primary coverage in the event of an accident. However, should the car owner’s coverage prove insufficient to cover all the damages, the driver’s insurance coverage will be considered as a secondary coverage.
What happens if someone borrowed the car without permission?
If the car was borrowed by an individual without the owner’s permission, they will be directly liable for any damages caused by the accident.
What happens if the driver of the borrowed car is uninsured?
In a situation where the borrower does not have their own auto insurance, the concept of permissive use means that the car owner’s insurance will remain the primary coverage in the event of any accident.
Conclusion
At the end of the day, even if you allow someone else to borrow your car and they get into an accident, it is your insurance as the car owner that will be the primary source that covers any expenses. This discussion is a good example of why you should have very good car insurance. However, you must not forget that your insurance company will try their best to minimize your payout in these complex situations, and you will need a competent car accident lawyer NYC to back you up.
At Gabriel Law, you will find advocates that listen, care, and will do everything in their power to fight for your rights and ensure you get the compensation you deserve, no matter how complex the situation may be. Whether it be across the negotiating table or fighting hard in court, we are ready to step up and will be there with you every step of the way.