Letting someone borrow your car might seem like the neighborly thing to do, but headaches can arise when the driver crashes. Like other states, Texas requires that people have liability insurance when they register a vehicle. But whose insurance needs to pay compensation for an accident? Are you on the hook simply because you own the car, even though you weren’t behind the wheel?
The answer to these questions is “it depends.” There are many considerations and questions which need answering. We encourage you to reach out to The Stano Law Firm to discuss your case in detail.
Who is At Fault for the Accident?
Texas is a fault-based system for car accidents. The general rule is that whoever is at fault for the crash is responsible for paying compensation. They can pay out of pocket, or their insurance can pay benefits if they have liability coverage.
Fault matters enormously. Let’s say the person who borrowed your car was not at fault. Someone else smashed into your car. In that situation, the at-fault driver must pay to fix your car. They are also responsible for paying medical bills for anyone injured in the crash.
More complications arise if the person driving your vehicle caused the crash and is at fault. So we need to answer additional questions.
Did You Give the Driver Permission to Drive Your Vehicle?
Let’s say the person driving your car is at fault. They were driving while distracted or were speeding when they crashed into an innocent motorist.
In this situation, we need to know if the driver had permission to drive your car. Permission can be explicit, such as saying, “Yes, you can take my car.” It can also be implied, such as handing over your car keys to someone who asks to drive your vehicle. Implied permission can also arise if someone regularly drives your car and you never object.
If you gave permission, then your liability insurance will be first in line to pay a claim if the person who borrowed your car is at fault. Suppose the person who borrowed your car slammed into another motorist in an intersection. Two people were in the car, and they suffered serious injuries which required a trip to the hospital.
In this situation, your liability insurance should cover medical care, lost income, property damage, and pain and suffering. The person who borrowed your car is at fault for the wreck—thus, your insurance is first in line to pay out benefits. That’s what happens when you give permission to drive your vehicle.
What if There Was No Permission?
Someone might have taken your car without permission. For example, you might have two roommates. One night while you are asleep, a roommate rummages in your jacket pocket and takes out your car keys. They then go to the grocery store to buy food only to crash into someone along the way.
In this situation, you did not give express or implied permission as the car owner. As a result, the vehicle is considered stolen.
The person who drove your car could still have insurance for their own vehicle. If so, their liability coverage kicks in when they are at fault for the crash—even though they are driving a different vehicle than the one they own.
As the car owner, you face a challenge. Your car was now damaged and you didn’t give the driver permission to use it. You can try to get your vehicle repaired, but you’ll first need to know who is at fault. If the person who borrowed the car is to blame, you should seek financial compensation from them. If a different driver is at fault, you can submit a claim on their liability insurance for property damage.
What if You Have No Insurance as the Car Owner?
You might not have insurance. Hey, it happens. Although Texas requires liability coverage, you might be one of the 14% of drivers in Texas who aren’t insured. There are many reasons why people don’t carry mandatory coverage, including the high cost of living. If it comes down to a choice between food or car insurance, then it’s understandable you might let your coverage lapse.
In that situation, insurance works differently. Suppose the person who borrowed your car has insurance. That means their insurance will kick in, even though they were driving your vehicle. Because you are uninsured, the borrower’s liability coverage is first in line.
Can You Be Sued?
Possibly. You might have let someone borrow your car who is a danger. There’s a tort called “negligent entrustment” in Texas. For example, you might have let someone without a valid license drive your car. If they get into a crash, then the victims could bring a negligent entrustment claim against you for letting this unlicensed driver behind the wheel.
Another common situation is allowing a drunk or high driver to get behind the wheel of your vehicle. You should not let an obviously drunk driver borrow your car. If you do, then you could end up sued.
Being sued is a disaster. You might lose personal property or money in a bank. The victim might come for much more than your insurance policy. For these reasons, you should always be careful about who you lend your car to.
Of course, if someone took the car without permission, then you haven’t “entrusted” them with it. You shouldn’t be sued in that case.
Contact The Stano Law Firm Today About Texas Car Accident Laws
Our firm exceeds the competition when it comes to complicated auto accident claims. We have represented accident victims struggling with serious bodily injuries. Our firm can review the evidence to determine who is to blame for the collision. Armed with this information, we can protect your rights and seek meaningful compensatory damages. Give us a call to schedule your free consultation with our Texas car accident lawyer. We won’t charge a fee until we win your case—it’s that easy.