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Who is liable when your friend borrows your car and wrecks it?
Jeff Ryan
October 30, 2023
Determining Liability and Insurance Response
Who is personally liable and whose insurance is going to respond depends on a number of factors that no one can know without much more information. Here is a general sampling of how insurance will likely respond:
- IF… the Friend is AT-Fault in the Accident
- Your Auto Insurance Policy will be Primary for:
- Damages to your vehicle
- Injuries to those in your Car
- Injuries and Property Damage to Others
- Your Friends Auto Policy may respond in a secondary role IF your vehicle was being used as your friends “temporary substitute” vehicle.
- Most Auto Policies consider a “Temporary Substitute” vehicle as one used because “your covered auto” (say your friend’s) is out of normal use because of its breakdown, repair, loss or destruction.
- IF… the Friend is NOT At-Fault in the Accident
- The third party’s insurance should be primary for:
- Damages to your vehicle
- Depending on the State (No-Fault States exempted) Injuries to people in your car
The general theme and reality is that your auto insurance will be the primary source of insurance coverage. There are circumstances where your friend’s insurance may respond, but that possibility is dependent on your jurisdiction, policy coverages and contractual wording.
Your friend will be liable personally for his actions, however, your auto insurance will be the primary coverage to defend him/her. Your friend's car insurance (if any) IF it responds, will be a secondary source of coverage.
About the Author: Jeff Ryan has been a licensed insurance agent since 1978, later becoming a full-time insurance professional in 1983. Since then, he has been the principal of The Ryan Agencies with offices in Hornell, Jasper, and Wellsville. The agencies serve approximately 15,000 clients in New York and Pennsylvania. Jeff holds numerous credentials including the Chartered Property & Casualty Underwriter (CPCU), Certified Insurance Counselor (CIC), Accredited Advisor in Insurance (AAI), Chartered Life Underwriter (CLU), and Chartered Financial Consultant (ChFC) designations. He holds a Master's Degree from the American College. Jeff enjoys writing about all things insurance and welcomes your questions and feedback.
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