What Happens If Someone Using My Car Gets in an Accident?

May 29, 2025 Posted In Car Accidents

If someone else crashes your car, what happens next depends on your insurance policy, whether the driver had permission, and who caused the accident.

Insurance Follows the Car, Not the Driver

In most cases, auto insurance follows the vehicle, not the person driving it. This means your car insurance is typically the primary coverage, even if someone else was behind the wheel. If your car is involved in an accident, your insurance provider will generally handle the claim, assuming the driver had your permission.

If the damages or injuries exceed your policy limits, the driver’s personal auto insurance (if they have it) may serve as secondary coverage. This layered structure allows injured parties to recover compensation from multiple sources, starting with the vehicle owner’s policy.

What if I Did Not Give Permission?

If someone used your car without permission, you may not be liable for damages. However, proving the lack of permission can be difficult. Insurance companies typically presume that a household member or close acquaintance had your consent unless you can provide evidence to the contrary. In cases of theft or unauthorized use, your insurer may deny the claim—especially if the driver was excluded from your policy or did not have a valid license.

Household Members

Some insurers require household members with access to your car to be listed on the policy. If they are not listed and cause an accident, your claim may be delayed or denied.

Excluded Drivers

If your policy specifically excludes a driver and that person crashes your car, your insurance will not cover the damages.

Commercial Use

If your vehicle is used for business purposes—like ridesharing or deliveries—and someone else crashes it, standard personal auto insurance may not apply.

What if the Other Driver Was at Fault?

If the other driver was responsible for the accident, their liability insurance should pay for the resulting damages. This includes repairs to your car, medical expenses for the driver of your vehicle and passengers, and possibly rental costs if necessary. However, various challenges can arise when pursuing a claim. For example:

• If there is a dispute about who caused the accident, both insurance companies may investigate and delay payment until fault is resolved.
• If the at-fault driver is uninsured or underinsured and you carry uninsured/underinsured motorist (UM/UIM) coverage, it may step in to cover the gap.
• You may need to file a claim through your own collision coverage and let your insurer recover damages from the other party later through subrogation.

Can I Be Held Personally Liable if Someone Else Crashes My Car?

There are certain situations where you could be held personally liable for an accident involving your vehicle:

Negligent Entrustment

If you knowingly let an unlicensed, intoxicated, or reckless driver use your car, you may be liable for any resulting damages.

Employee Use

If the driver was your employee using the car for work duties, you could be responsible under vicarious liability.

Poor Maintenance

If a mechanical failure caused the crash and you failed to maintain the vehicle, liability may fall on you.

Excluded Driver

If the driver was excluded from your insurance policy, your insurer may deny coverage, leaving you personally responsible.