Liability Laws When You Loan Your Car

Liability laws regarding accidents in a borrowed car are confusing to most. Many people find themselves in a situation where they need to borrow a car for one reason or another or lend a car to a friend or family member in need. But what happens when an accident occurs in a borrowed vehicle? There are many questions commonly asked by those in this situation and they need answers. While state laws and insurance policy coverage’s may differ, most states and insurance companies have similar laws and policies. If you find yourself in a situation where a borrowed or loaned car was involved in an accident, you may consider contacting a Phoenix vehicle accident lawyer. They understand the traffic laws and insurance language and can help you sort out this dilemma. Call to learn more about your legal options during a free case evaluation.

Liability laws vary per state. In most cases the insurance policy follows the vehicle insured as long as the vehicle owner gave the other driver permission to use the vehicle. If you borrow a vehicle from a friend, you are in a sense borrowing their insurance as well, so it is a good idea to fully understand the coverage of a vehicle before you borrow it. Family members that are on the same policy and “borrow” each other’s vehicles are typically covered under the primary drivers policy, because members in a group policy usually have the same coverage, regardless of which vehicle is being driven. In cases where you are borrowing a car from someone not on the same policy as you, (perhaps a friend) your coverage will extend only to the coverage of the primary driver of that vehicle. If you cause damages that extend beyond that coverage, you will be responsible for the remainder of the damages; however it is possible to use your own insurance company to cover the excess damages in some situations. A Phoenix vehicle accident lawyer can evaluate your claim and help you determine the best option for your unique situation.

If you lend a car to someone who is not covered on your policy and the damages surpass your coverage, you could be held liable for the amount not covered by the policy. Furthermore if the person you lend your vehicle to causes an accident because of negligence or if they had a suspended license, you could be liable for any criminal charges and fees they acquire. Contact a Phoenix vehicle accident lawyer if you have been involved in a borrowed car accident and have questions regarding how the liability laws apply in your situation.