What Happens If Someone Wrecks Your Car And They Aren’t On Your Insurance?
A car accident caused by an at-fault driver who doesn’t have sufficient insurance coverage of their own can leave you paying hefty out-of-pocket repair costs. But there’s still a possibility, even though slim, that you can file a claim with your insurer.
You should, however, be prepared to have a challenging time pursuing such a claim, especially without a lawyer. Our Atlanta car accident lawyers at Spaulding Injury Law: Atlanta Personal Injury & Car Accident Lawyer have dealt with such cases for a long time and can help you recover damages.
Your Insurer Follows the Vehicle, Not the Driver
Standard auto insurance follows the insured vehicle rather than specific drivers. So when you lend your car to a friend, your policy remains primary for collision damage and liability coverage.
For example, if your friend crashes your car, your collision coverage pays for repairs, while your liability covers injuries to others.
The friend’s insurance generally provides no coverage for accidents while driving a borrowed vehicle. Only after your policy limits are exhausted would the friend’s insurance potentially assist as secondary coverage if damages exceed your amounts.
However, some budget insurers issue non-standard “step-down” policies excluding permissive drivers unless explicitly named. Avoid these barebones plans that lack comprehensive coverage from little-known carriers.
Also, consider that your friend may not be liable if the crash resulted from another driver’s fault. It would be best to investigate accident responsibility before claiming against your policy.
The bottom line is that standard policies cover friends behind the wheel, but confirm specifics with your agent. Responsible lending also requires verifying licensure and exercising discretion. Protect yourself and your premiums by carefully choosing who drives your insured vehicle.
It Matters If Your Friend Had Permission To Use Your Vehicle
Permissive use means the driver was authorized to operate the insured’s vehicle. However, issues arise if an uninsured friend takes your car without permission, known as non-permissive use.
In some states, the friend’s insurance becomes primary in non-permissive use cases, even if their policy excludes coverage for driving other cars. However, uninsured friends leave you relying on your policy despite a lack of consent.
Complex scenarios also emerge when car crash damages exceed your policy limits. For example, if your friend crashes your insured car, causing $20,000 in property damage, your liability limit is $10,000. Your friend’s insurer may cover the $10,000 difference if they hold an active policy.
Even with sufficient limits, your insurer often subrogates – seeking repayment from the at-fault driver’s insurance after paying you. Complicated liability shifts emerge when lending vehicles if policies contain exclusions or gaps in coverage.
Consult your agent about risks before allowing non-permissive use. Protect yourself by ensuring drivers carry adequate insurance of their own.
Filing a Claim
If you carry that optional coverage, file a claim with your collision insurance policy. Your deductible would apply. But if you only have liability coverage, file a property damage claim directly against the at-fault driver’s insurance. However, low policy limits may result in limited payout.
Consider filing a lawsuit against the driver at fault for severe damage to recoup repair costs exceeding their policy limits. An attorney can help prove negligence.
It’s also important to explore whether you have uninsured/underinsured motorist coverage in your policy to pay for damages caused by drivers with no or low insurance. For serious accidents, your health insurance and/or auto medical payments coverage can assist with medical bills related to your injuries.
In some cases, the at-fault driver flees the scene. Report as a hit-and-run so police can search for the vehicle. This report helps support an insurance claim.
Contact Atlanta Personal Injury & Car Accident Lawyer Today
Being stuck paying for vehicle damage that isn’t your fault is frustrating. But it would be best if you didn’t have to bear all the responsibility for the crash. Our Atlanta car accident lawyers from Spaulding Injury Law can help investigate all options to compensate you for repairs and related expenses. Contact us today!
When you become our client at Spaulding Injury Law, you’ll be represented by a thoroughly experienced Atlanta personal injury attorney like Theodore A. Spaulding. For over 15 years, Mr. Spaulding has helped victims of negligence across the state of Georgia resolve personal injury cases, and he’s received a remarkable number of awards and honors from the legal community recognizing his commitment to clients and to the metro-Atlanta area.
Mr. Spaulding has been named one of the Top 100 trial lawyers in Georgia by the National Trial Lawyers for six successive years.
He is honored as a lifetime member of the Million Dollar Advocates Forum ® by the Top Trial Lawyers in America ®.
Charter Member of the Distinguished Justice Advocates.
Member of the Atlanta Bar Association.