If another person wrecked your car while driving it, determining whose insurance policy pays out can be a confusing process. Unfortunately, there is not a simple answer to this question. It depends on the policies involved and on the situation that led to another driver being behind the wheel of your car. In Tennessee, liability for a car accident can apply to both the driver and the vehicle owner, depending on specific circumstances. The driver who directly caused the accident through negligent behavior like speeding, distracted driving, or failing to obey traffic laws typically bears primary liability. However, vehicle owners can also be held responsible under several legal theories, even if they weren’t present during the accident. Under the “negligent entrustment” doctrine, an owner who loans their vehicle to someone they know or should know is incompetent, inexperienced, or reckless can be liable for resulting damages. The “family purpose doctrine” in Tennessee holds the head of household responsible for accidents caused by family members driving the family vehicle with permission. Employers are generally liable for accidents caused by employees driving company vehicles within the scope of employment under “vicarious liability” principles. Additionally, vehicle owners who fail to properly maintain their vehicles may be partially liable if mechanical failures contributed to the accident. These various liability theories can create multiple recovery sources for accident victims, which is particularly important when the at-fault driver has insufficient insurance coverage.
If you loaned your car to a friend or family member and they caused a car accident while driving it, you may want to meet with a car accident lawyer. This is especially true if your friend or family member does not have auto liability coverage of their own.
At the OEB Law, PLLC, we can help you understand your Tennessee car insurance policy and its limitations when it comes to other drivers. Call us today at (865) 546-1111 to schedule a consultation with one of our attorneys.
Will my liability insurance cover damages if I let a friend borrow my car and he caused a crash?
Many people believe the at-fault driver’s liability insurance always steps up and covers damages after a crash. While this is generally true, one of the exceptions to this rule is when that driver is behind the wheel of someone else’s car.
Liability coverage does not always follow the driver. In fact, the car owner’s policy is the most common insurance policy to pay out when a driver crashes a borrowed car.
How much coverage this policy offers, however, depends on its language. Generally, as long as you gave the other driver permission to drive your vehicle, your insurance will pay out. Some do offer limited coverage when someone else is behind the wheel, so it pays to know what your policy says before allowing someone else to drive your car.
It is true that many insurance policies cover drivers no matter what car they are driving. But this coverage is typically secondary to the car owner’s policy. These policies may also include limitations and exceptions. Some will only pay if the driver’s usual vehicle is unavailable, for example.
Imagine you loaned your neighbor your car. He did not stop in time and rear-ended another vehicle at a stop sign. Your insurance would cover the damage to the other person’s car and their medical bills up to its policy limits. If their damages exceed these limits, your neighbor’s auto liability policy should kick in to cover the excess. To repair your vehicle, you will need to carry optional collision coverage, file a claim, and pay your deductible.
The best way to understand how much liability coverage is available after a friend crashes your car is to discuss your situation with our skilled car accident attorneys. We can answer your car accident questions, help you understand the limits of your policy, and let you know what to expect during the claims process.
Am I personally liable for an accident a friend caused in my car?
If you are the owner of the car, your insurance company is likely the primary liability coverage after a crash. Your insurance will pay up to its limits before your friend’s coverage takes over. There are some cases, however, when you might be personally liable for any amount above your policy maximum or for the entire amount.
This is sometimes known as “owner’s liability” or “negligent entrustment.” Under some conditions, people who suffer damages in a car accident can file a lawsuit against both the driver of a borrowed car and the owner of that car.
Excluded Drivers
Auto insurance policies typically include all family members of driving age who live in the home. Occasionally, people need to exclude one or more of these family members from their auto insurance policy in order to bring costs down.
For example, having your 22-year-old son with a poor driving record on the policy covering a sports car may increase the cost of coverage dramatically. But if you exclude your son and he then borrows that car and wrecks it, the insurance company will deny any claims.
Unlicensed or Incompetent Drivers
You know your brother does not have a license but he needs to borrow the car to run a few errands. Or you know your friend has a history of reckless driving but you trust he will drive responsibility while behind the wheel of your car. If you knowingly loan your car to an irresponsible, incompetent, or unlicensed driver, your insurance company may deny your claim. Even if they pay out, the accident victims could sue you based on your negligence.
Drunk Drivers
Never loan your vehicle to someone who has been drinking or who has a history of drinking and driving. It pays to ensure anyone you allow to drive your vehicle is sober and not under the influence of drugs. This can even include over-the-counter drugs that make them drowsy. If you loan your car to someone who is drunk, drugged, or drowsy, you could be partially liable for any accidents they cause.
Defective Vehicle
While this is rare, occasionally a problem with a car or car part causes an accident. If you knew—or should have known—there was an issue with your vehicle, you could be liable if that issue causes an accident.
If you believe one of these conditions may have played a factor in your case, contact one of our Knoxville car accident attorneys as soon as possible. You will need someone on your side to help you understand complex liability issues and to aggressively protect your assets.
How can I reach a knowledgeable car accident lawyer?
At the OEB Law, PLLC, we can help you understand how your auto insurance policy works. We can analyze the coverage available based on your policy and any other policies in play. We will work to mitigate the effect this accident has on your financial health and help you minimize your liability in the crash. Call our office today at (865) 546-1111 to schedule a time to meet with one of our lawyers.
Why Trust Us
At OEB Law, our reputation speaks for itself:
- Proven Results: We’ve recovered significant compensation for our clients through both settlements and courtroom verdicts
- Client Satisfaction: Our numerous 5-Star Google Reviews showcase our commitment to responsive, caring, and effective legal representation
- No Fee Unless We Win: You don’t pay attorney fees unless we successfully secure compensation in your case
- Local Knowledge: As East Tennessee natives, we understand our community and care deeply about the people we serve
- Personalized Approach: We personalize each case to meet our clients’ specific needs, ensuring you’re never just another file number
Community Commitment
Our dedication extends beyond the courtroom. We proudly support:
- Boys & Girls Clubs of Tennessee Valley programs and toy drives
- Local high school football programs through Rivalry Thursday sponsorships
- The Knoxville Ice Bears and community fundraising initiatives
- Numerous youth, student, and community organizations throughout East Tennessee
As Tim Elrod says, “We don’t just take—we give back because the people you’re giving back to are the people who are supporting your firm.“
Have a personal injury or criminal defense case? We’re available 24/7 to help. Get In Touch
- Call or Text: (865) 546-1111
- Visit: https://oeblawtn.com/
- Available: Standing by 24/7
Why OEB Law? Because They’re Good For The Community.
TEXT or CALL (865) 546-1111 for HELP NOW. Standing By 24/7.
FAQ
Yes, if someone borrows your car in Tennessee and causes an accident, your insurance rates will likely increase because in most cases, car insurance follows the vehicle rather than the driver. This is known as the “permissive use” principle, where your insurance policy is considered the primary coverage regardless of who was driving (assuming you gave permission). The accident will typically go on your insurance record and can affect your rates for 3-5 years, potentially resulting in premium increases of 20-40% depending on the accident’s severity and your prior history. Some policies include an exception if the borrower has their own insurance with equal or higher coverage limits, in which case their policy might become the secondary coverage after your policy limits are exhausted. To potentially protect yourself, you can add a named driver exclusion to your policy for high-risk individuals, though this means your insurance won’t cover accidents if that person drives your car with or without permission. The best protection is being selective about who borrows your vehicle and considering whether the borrower has a clean driving record and adequate insurance coverage. If your rates increase substantially after such an incident, Knoxville attorney Tim Elrod might be able to advise you on options for mitigating the financial impact and whether pursuing reimbursement from the borrower for increased premium costs is feasible in your specific situation.
