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If I loan my car out am I liable

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Latest post Tue, Feb 7 2006 2:34 PM by KellySz. 4 replies.
  • Sun, Jan 15 2006 9:58 AM

    • dj59
    • Not Ranked
    • Joined on Sun, Jan 15 2006
    • Posts 2

    Question [=?] If I loan my car out am I liable

    If I loan my car to a friend and they have an accident or get a ticket (speeding, dui, etc). Am I liable because I own the car and carry the insurance OR are they liable because they are the driver?
  • Sun, Jan 15 2006 2:34 PM In reply to

    • Puck
    • Top 100 Contributor
    • Joined on Sat, Oct 27 2001
    • GA
    • Posts 617

    Feedback [*=*] re: If I loan my car out am I liable

    For a ticket, no.

    For an accident, maybe. Let's put it this way. Even if the accident is entirely your friend's fault, the person they hit will probably sue you. Then you'll want to sue your friend, because he ruined your car, AND because you're being sued.

    In short, your dad's old advice, when you were a teengare, still applies perfectly -- never let anyone else drive your car. PERIOD.
  • Sun, Jan 15 2006 9:11 PM In reply to

    re: If I loan my car out am I liable

    Anybody to whom you lend your car is defined as an insured under your policy.

    So if your friend gets sued for the accident you don't have to be sued at all.

    Your policy will pay if he's at fault and defend him if he isn't.

    Then you will pay the increased insurance rates for about 3 years for a chargeable accident.

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • Mon, Jan 16 2006 12:12 PM In reply to

    • ashkicker
    • Top 75 Contributor
    • Joined on Mon, Sep 17 2001
    • MO
    • Posts 794

    re: If I loan my car out am I liable

    With rare exceptions, car insurance follows the car and if you provided consent to use the car, your insurer would provide primary coverage to the user. Similarly, if he/she had a personal car insurance policy, it would likely "stack" as excess protection.

    The more important issue is not whether you can be sued, but rather whether you could be held liable for damages caused by negligence of the permissive driver. Yes you can be sued! Generally speaking the only requiriement to file a lawsuit is not legal standing, but rather the ability to find the courthouse and pay the filing fee.

    As to liability, that is an entirely different matter.
    If the driver was on a mission or errand for you when the accident occured then his/her negligence could be imputed to you. Additionally, if you had knowledge that the driver was unlicensed, intoxicated, wreckless or otherwise impaired then you might be held liable for negligent entrustment.
  • Tue, Feb 7 2006 2:34 PM In reply to

    • KellySz
    • Not Ranked
    • Joined on Mon, Nov 22 2004
    • Posts 1

    re: If I loan my car out am I liable

    You may also want to check your insurance policy. Some policies state that they will pay out the liability if you allow another person to use your car but will not cover the collision or comp for that driver.

    All insurance companies are different so you have to make sure that you read your policy before you lend your car out to another person.

    As far as liability goes most insurance companies cover the first named insured and spouse (if there is one) and anyone you give permission to.
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