September 25, 2022

Am I liable for an accident involving the vehicle I lent out?

You wouldn’t be the first person to lend someone your car, only for that car to get into a collision. Are you responsible for the vehicle accident, then? This will be the subject of the article’s debate.

In most car accidents, the driver is the one who owns the car, making liability and insurance concerns quite simple. How does this work out, though, if the vehicle has been lent to someone else and they are driving it? Get legal counsel on your particular situation from Palmdale Lancaster car accident lawyers.

The following are some frequent circumstances where a vehicle has been lent, and an accident occurs:

  • Your employee operating the vehicle – even though you might not be physically operating the vehicle and your employee has their own driver’s licence. Sadly, the law might hold you legally liable for any negligent driving that your employee engaged in while performing work-related duties at the time of the accident. However, liability is less likely to extend to the employer if the accident happened after hours while the employee was not on duty.
  • Someone borrowed your car – Your car was loaned to someone; as long as you permitted them to use it, doing so is permissible. To make sure they are covered by your auto insurance in the event of an accident, though, you should ask before handing over the keys. If the person is a relative who frequently uses your car, you might want to add their name to your policy as a driver so they can claim your insurance provider in the event of an accident.

Read the fine print of both policies to see which one will apply in the event of an accident if the person is a buddy in need who owns a car and has their own insurance coverage. It is crucial to read the policy’s tiny language to determine whether your insurance coverage applies in any of these scenarios.

  • If you negligently entrusted or lent your car to someone you knew or should have known was unfit to drive, the resulting injuries and damages will probably extend to you as the owner of the vehicle. This is because the term “lending your car to an incompetent or unfit driver” indicates that if you give permission to this person and they drive negligently and get into a car accident, you will likely be responsible for those damages and injuries.