Letting a friend or family member borrow your car is a common scenario, but many people in California are unaware of the legal implications if that person gets into an accident. If you own a vehicle and allow someone else to drive it, it’s crucial to understand your potential liability and how to protect yourself from financial consequences.
Are You Liable if Someone Else Crashes Your Car?
In California, car insurance generally follows the vehicle rather than the driver. This means that if someone else borrows your car and gets into an accident, your insurance policy will typically be the primary coverage. However, if the damages exceed your policy limits, you could still be held financially responsible.
According to California law, if you allow someone to drive your vehicle, your liability is generally capped at $15,000 per person and $30,000 for multiple people for bodily injury, plus $5,000 for property damage. This means that in most cases, your financial responsibility is limited to these amounts, assuming the person driving your car was not acting recklessly.
Negligent Entrustment: A Major Exception
There is an important exception to the liability cap called negligent entrustment. This legal doctrine applies if you knowingly allow someone to drive your car despite being aware that they pose a danger to others. You could be held fully liable for damages if:
- The driver has a history of reckless driving, DUIs, or multiple accidents.
- The driver was intoxicated or impaired when you gave them permission to use the car.
- The driver was unlicensed or had a suspended license.
In such cases, your liability may go beyond the standard limits, making you personally responsible for all damages.
How to Protect Yourself
If you plan to let someone borrow your car, there are several steps you can take to minimize your risk:
- Ensure They Have Their Own Insurance: If the borrower has their own car insurance policy, it can act as secondary coverage in case of an accident. This can help cover costs that exceed your policy’s limits.
- Verify Their Driving History: Avoid lending your car to individuals with a poor driving record, recent DUI convictions, or a suspended license. If they have a history of reckless behavior, you could be held fully liable.
- Confirm Their Sobriety and Condition: Never allow someone to drive your car if they are under the influence of drugs or alcohol. If an accident occurs under these circumstances, you could be held accountable for all damages.
- Consider Adding Them to Your Policy: If a friend or family member frequently borrows your car, adding them as a listed driver on your insurance policy may provide better coverage and peace of mind.
Final Thoughts
While it may seem harmless to let a friend or relative borrow your car, the legal and financial consequences of an accident can be significant. Understanding California’s liability laws and taking precautions can help protect you from unexpected costs. Before handing over your keys, always ensure that the person driving is responsible, insured, and legally able to operate a vehicle.
For more information on California’s vehicle liability laws, check out the official legal codes or consult an attorney for personalized advice.
