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When loaning your car to a friend or relative, you may worry about what will happen if they get in an accident. In most situations, your car insurance should still apply if someone else is driving, as long as they have your permission. There are a few exceptions, which we’ll talk about later in this article. More importantly, if the person driving your car is not at fault, your insurance company will expect the other driver’s insurance to pick up the expenses.
In an ideal situation, you would make a claim with the appropriate insurance company and it would be paid. But things don’t always go that smoothly in the real world. Insurance companies are notorious for finding ways to dodge paying a claim – this can happen whether it’s your insurance company or the other driver’s. Often people think there’s nothing they can do if the insurance company denies their claim, but that isn’t always the case. Just because the insurance adjuster thinks they have a legal reason to refuse your claim, doesn’t necessarily mean a judge would agree. However, most disputes with insurance companies can be solved out of court, with the help of an experienced Atlanta car accident lawyer. Before you make any decisions, you should seek legal advice to determine your options.
Attorney Ali Awad is an experienced litigator who isn’t afraid to take on big insurance companies for his clients. He founded the CEO Lawyer Personal Injury Law Firm and within a few short years, transformed it into one of the fastest-growing law firms in the country. More than a million followers enjoy his social media posts with entertaining yet practical legal wisdom. If you’re struggling with expenses after a car accident, please contact the CEO Lawyer Personal Injury Law Firm for a free, no-obligation consultation about your case.
If Someone Else Crashes Your Car, Whose Insurance Covers It?
Like any other car crash, it depends on who was at fault in the accident. Fault, in the state of Georgia, means whoever was more than 50 percent responsible for the collision. If there is shared responsibility, the person who is less than 50 percent at fault can seek damages from the driver who was more than 50 percent responsible. However, the damages will be reduced by the amount of fault the less-responsible driver had. So if your friend is in an accident in your car where they are 10 percent responsible, 10 percent will be deducted from whatever damages might be paid by the other party’s insurance.
When the other driver is mostly (more than 50 percent) at fault, you should seek compensation from their car insurance company. If they received a citation and/or the police report indicates they were at fault, this may be an easier process. However, fault isn’t always evident at the scene of an accident. In many cases, the responding officers have limited time and resources, and not much evidence to go on. Also, they are not required to assign fault in their report. Instead they may just include the facts they do have, and what each party claimed happened.
If fault is not clearly established, the other party’s insurance carrier may use this as an excuse to deny the claim. Fortunately, there are options for fighting the denial. Your attorney’s investigative team can delve into the accident, and they may be able to find additional evidence to support the other party being at fault. If the insurance company refuses to budge, you can take them to court. However, if you lack strong evidence in your favor, your attorney may advise against this as the odds of winning may be low.
What happens then? If you have Collision and MedPay insurance, which are optional but highly recommended, these may cover your property damage and medical expenses for the person driving your car and any passengers. You do not have to establish that anyone was at fault for these policies to pay out. In spite of the benefits, MedPay and Collision do have one important limit – they will not pay damages for the other driver or occupants in their car. If the other driver is seeking liability from you, your regular liability insurance may cover it, but your insurance company could also claim there was no proof the person driving your car was at fault. In these kinds of complex situations, it’s important to get legal advice from a qualified attorney.
What Happens if Someone Else Crashes Your Car?
In situations where the person driving your car was at fault, your liability insurance should apply for the other party’s damages. Meanwhile, your Collision and MedPay coverage (if you have them, and hopefully you do), will still cover the driver and passengers of your car, and damage to the car itself.
Will My Insurance Rates Go Up if Someone Driving My Car Causes an Accident?
Yes, this may happen. From the insurance company’s perspective, even if you are a safe driver, you loaned your car to someone who wasn’t and the insurer had to pay for their damage. If it was just once and you have “accident forgiveness” on your policy, you may be able to use this feature to prevent a rate increase.
Can the Insurance Carrier Refuse to Pay if Someone Else Crashes My Car?
While your insurance coverage will usually pay in these situations, there are some exceptions:
- The insurance company does not have to pay if the person was driving your car without your permission. Proving this, though, is not always easy.
- They may not have to pay if the driver was breaking the law in some way – driving without a license, driving drunk, etc.
- If you specifically excluded someone in your household from your policy to save money and they get in a wreck while driving your car anyway, the insurance company will not pay. If you don’t remember excluding anyone from your policy, you probably don’t need to worry about this. However, there are some situations where exclusions make sense. For example, if your teenager got their license and quickly brought home a couple speeding tickets, that could make your rates shoot up. So you might tell them they’re not allowed to drive your car and exclude them from your insurance.
Contact the Injury and Accident Attorneys at the CEO Lawyer Personal Injury Law Firm
In most cases, there should be some insurance coverage available when another person gets in an accident with your car. But the insurance company may not agree to pay without a fight, so it’s best to speak with an experienced car accident lawyer before you decide how to proceed. Please contact the CEO Lawyer Personal Injury Law Firm for a free consultation to learn the possibilities and protect your right to compensation.