Car accidents can be complicated situations, especially when they involve borrowed vehicles.
Who is responsible for damages and injuries in these cases – the car owner or the driver? This question doesn’t always have a straightforward answer, as liability can depend on many factors, including state laws, insurance policies, and the specific circumstances of the car accident.
Continue reading below to learn more about liability in accidents involving borrowed vehicles.
Understanding Liability in Car Accidents
Before we dive into the specifics of borrowed car scenarios, it’s important to understand the basic principles of liability in car accidents:
- Negligence: In most car accident cases, negligence determines liability. The negligent driver (i.e., failed to exercise reasonable care) is typically held responsible for the resulting damages and injuries.
- Vicarious Liability: This legal principle holds one party responsible for the actions of another. In the context of car accidents, it can sometimes make vehicle owners liable for accidents caused by others who drive their car.
- Permissive Use: This refers to situations where a vehicle owner gives permission to someone else to use their car, giving rise to a form of vicarious liability.Permissive use helps determine liability in borrowed car scenarios.
- State Laws: Liability laws can vary significantly from state to state. Some states have specific statutes addressing owner liability, while others rely more heavily on common law principles. In New York, Vehicle and Traffic Law section 388 serves as a “permissive use” statute which gives rise to a vicarious liability when a driver is operating the owner’s vehicle with permission and consent. That permission can be express or implied depending on the circumstances.
Understanding these concepts is essential as we explore the question of liability in accidents involving borrowed cars. The General Rule: The Insurance Follows the Car
In most cases, the general rule is that insurance follows the car. This means that the car owner’s insurance is typically the primary insurance in the event of an accident, regardless of who was driving at the time, so long as the driver had express or implied permission to drive the vehicle.
Here’s how this might works:
- If someone borrows a friend’s car and gets into an accident, the friend’s auto insurance would typically be the primary coverage for the incident.
- The driver’s own auto insurance might provide secondary coverage if the damages exceed the limits of the friend’s policy.
This general rule exists because auto insurance policies typically cover specific vehicles rather than drivers. The policy covers the car, regardless of who drives it at any given time (with some exceptions, which we’ll discuss later).
However, this is just a general rule. The actual determination of liability and insurance coverage can be much more complex, depending on the specific circumstances of the accident and the details of the insurance policies involved.
When You Can Hold the Car Owner Liable
You may also seek to hold the car owner liable for an accident even if they weren’t driving due to:
- Negligent Entrustment: If the car owner knowingly lends their vehicle to an incompetent, reckless, or impaired driver, you can hold them liable under the theory of negligent entrustment. For example, if an owner lends their car to someone they know is intoxicated or doesn’t have a valid driver’s license, they could be held responsible for any resulting accidents.
- Vehicle Defects: If the accident was caused by a problem with the car that the owner knew about (or should have known about) and failed to address, they might be held liable. This could include issues like faulty brakes or bald tires.
- Employer-Employee Relationships: If an employee causes an accident while driving a company car for work-related purposes, the employer (as the vehicle owner) may be held liable under the principle of vicarious liability.
- Family Car Doctrine: Some states have a family car doctrine or family purpose doctrine. Under this rule, the owner of a family car may be held liable for accidents caused by family members who were using the car for family purposes.
- Vicarious Liability Laws: Some states have specific laws that hold car owners vicariously liable for accidents caused by people they allow to drive their cars. New York, for example, has a law that makes car owners liable for accidents caused by anyone driving their car with their permission.
The car owner’s liability in these situations often stems from the legal concept of vicarious liability. This principle recognizes that in certain relationships (like car owner and permitted driver), it’s fair to hold one party responsible for the actions of another. The rationale is that the car owner has the power to decide who uses their vehicle and therefore bears some responsibility for what happens when they allow others to drive.
Even in cases where you can hold the driver liable, the car owner’s insurance may still provide initial coverage. However, the insurance company might then seek reimbursement from the driver through a process called subrogation.
How Insurance Typically Works in Borrowed Car Scenarios
Understanding how insurance typically works in borrowed car scenarios can help clarify the liability question:
- Primary Coverage: As mentioned earlier, the vehicle owner’s insurance usually provides primary coverage. This means it’s the first policy to pay out in the event of an accident.
- Secondary Coverage: The driver’s personal auto insurance may provide secondary or excess coverage. This kicks in if damages exceed the limits of the owner’s policy.
- Permissive Use: Most personal auto insurance policies include coverage for permissive use, which means they cover accidents when the insured vehicle is being driven by someone with the owner’s permission.
- Non-Owned Car Coverage: Many individual auto insurance policies include non-owned car coverage, which provides liability protection when the policyholder drives someone else’s car.
- Collision vs. Liability Coverage: It’s important to distinguish between collision coverage (which pays for damage to the insured vehicle) and liability coverage (which pays for damage and injuries to others). If the owner only has liability coverage, damage to their own car in an at-fault accident might not be covered, regardless of who was driving.
- Commercial Policies: If the borrowed vehicle is a commercial vehicle, different rules may apply. Commercial auto policies often have different provisions for non-owner drivers.
Both car owners and borrowers need to understand their insurance coverage before lending or borrowing a vehicle.Someone hurt in a car crash should consider contacting an experienced personal injury attorney who can ensure that all applicable insurance companies are on notice.
Legal Considerations and State Variations
The question of liability in borrowed car accidents can be further complicated by variations in state laws. Some key legal considerations include:
- Statutory Vicarious Liability: Some states have laws that automatically hold car owners liable for accidents caused by anyone driving their car with permission. New York’s Vehicle and Traffic Law Section 388 is a well-known example.
- Negligent Entrustment Laws: Most states recognize the doctrine of negligent entrustment, but the specific requirements and applications can vary.
- Comparative vs. Contributory Negligence: States have different systems for allocating fault in accidents. Some use comparative negligence, where damages are allocated based on each party’s degree of fault. In contrast, others use contributory negligence, where a plaintiff who is even slightly at fault may be barred from recovery.
- No-Fault Insurance States: In no-fault insurance states, each driver’s insurance typically covers their own injuries regardless of who was at fault, which can affect how liability is determined. New York is a no-fault insurance state.
- Minimum Insurance Requirements: States have different minimum requirements for auto insurance coverage, which can impact liability in accidents involving underinsured drivers.
- Statute of Limitations: The time limit for filing a lawsuit after a car accident varies by state, typically one to six years. In New York, the statute of limitations for most personal injury lawsuits, including car accidents, is generally three years from the accident date. The actual statute of limitations can vary dramatically depending on the unique circumstances.
Given these variations, it’s important to consult with a car accident attorney who understands auto accidents and can provide valuable guidance on how these laws apply to your situation.
Speak to a Car Accident Lawyer Today
At William Mattar Law Offices, we understand car accident cases, including those involving borrowed vehicles. After an accident, don’t hesitate to contact us for professional legal guidance.
