Whose Insurance Covers a Car Accident If You Borrow a Car?

Before lending your car to a friend or borrowing someone else’s vehicle, knowing how insurance coverage works in these situations is essential. The question of whose insurance applies after an accident in a borrowed car can significantly impact financial liability and legal responsibility.

After a borrowed car accident, consult a car accident attorney at Regan Zambri Long immediately. Insurance companies often minimize payouts, but our experienced lawyers will fight for full compensation for your vehicle damage and injuries. Don’t settle for less than you deserve, legal representation ensures your rights are protected against insurance tactics designed to reduce their costs.

Call Regan Zambri Long for a no-obligation, free consultation today.

Does Insurance Follow the Car or the Driver?

In most cases, car insurance follows the vehicle rather than the driver through what’s known as a permissive driver clause. This means the car owner’s insurance typically provides primary coverage when someone borrows the car with permission. If the owner’s policy limits are exceeded, the borrower’s auto policy may provide secondary coverage to help cover the remaining costs. However, if the borrower is listed as an excluded driver on the owner’s policy, they won’t be protected under that insurance.

Always check your specific policy to confirm it includes a permissive driver clause, as coverage details can vary between insurance providers.

Insurance Differences in DC, MD and VA for Borrowed Cars

Insurance requirements and coverage for borrowed vehicles vary by location:

Washington, DC

• The car owner’s insurance bears the primary responsibility
• Under vicarious liability, owners can be held liable for lending to unsafe drivers
• The owner’s insurance typically won’t cover injuries to the person who borrowed the car

Maryland

• The owner’s insurance follows the car as primary coverage
• Borrower’s insurance may apply if the owner’s coverage is exceeded
• Accident claims may increase the owner’s premiums even if they weren’t driving

Virginia

• Owner’s insurance covers accidents when the borrower has permission
• Coverage may be denied if the borrower operates the vehicle outside the agreed-upon parameters
• Permission must extend to both driving the car and where it can be driven

Across the board, the general consensus is that the car owner must grant the person permission to drive the car and where the car can be in order for insurance coverage to apply.

Let our experienced attorneys review your borrowed car accident case during a free consultation.

When Does the Owner’s Insurance Cover a Borrowed Car?

The owner’s policy generally covers borrowed vehicles when the owner gives explicit permission to use them. However, coverage depends on the vehicle not being used for commercial purposes, which often requires different insurance. Additionally, the driver must not be excluded from the policy for coverage to apply.

Vehicle owners and borrowers should know that insurance coverage may be limited or denied in several situations. For example, the owner’s insurance may refuse to cover damages if the car was borrowed without permission. Similarly, coverage might be denied if the borrower was intoxicated or driving without a valid license at the time of the accident. Using the vehicle for business purposes not covered by the policy can also result in coverage gaps that leave both parties financially vulnerable.

Steps to Take After an Accident in a Borrowed Car

If you’re involved in a car accident while driving someone else’s vehicle:

• Document all property damage and injuries thoroughly
• Collect information from all parties involved in the accident
• Notify both the insurance company and the vehicle owner promptly
• File an insurance claim with the appropriate insurer
• Track all medical expenses and other accident-related costs

Speak with the car accident attorneys of Regan Zambri Long about your borrowed car collision case today.

When You’re Not at Fault in a Borrowed Car Accident

If someone else caused the accident while you were driving a borrowed car, the situation becomes more nuanced.  The at-fault driver’s insurance should primarily cover damages to the borrowed vehicle and any injuries sustained. Despite this, you should still notify the owner’s insurance company about the accident, as they may need to file a claim against the at-fault driver’s insurance.

Documenting evidence showing the other driver’s fault is key, including police reports, witness statements, and any available traffic camera footage. In cases where the at-fault driver has insufficient or no insurance, the owner’s uninsured/underinsured motorist coverage may apply to cover damages. Throughout this process, you and the vehicle owner should avoid making statements that could be interpreted as accepting blame or liability, as this could complicate the claims process.

Protect Yourself When Borrowing or Lending a Car

For Vehicle Owners:

• Verify your auto policy covers additional drivers
• Understand any non-permissive use exclusions
• Consider adding regular borrowers to your policy as additional insured drivers

For Borrowers:

• Confirm both your coverage and the owner’s insurance provide adequate protection
• Document the permission granted for using the vehicle
• Exchange insurance information with the owner before driving

Both parties should ensure current insurance cards and registration information are kept in the vehicle.

When to Seek Legal Help

Car accidents involving borrowed vehicles present complex liability issues where insurance companies may dispute coverage based on permission status, the relationship between parties, or policy exclusions. These complications often leave injured parties struggling to secure compensation for medical bills and damages.

The experienced attorneys at Regan Zambri Long understand the insurance issues at stake and will fight tirelessly for the full compensation you deserve.  Contact us today for a free consultation and let us handle the insurance tactics while you focus on recovery. Your peace of mind is our priority.

Regan Zambri Long handles car accident cases in DC, Maryland and Virginia.  Call for a free consultation today.