Can You Be Liable for an Accident Caused by Someone You Let Drive Your Car?

You can be held responsible when someone driving your car causes an accident because auto insurance follows the vehicle, not the driver. Your insurance policy will cover the damages to your car. If someone takes your car without your permission, you are not responsible for damages.  

If you let a friend or family member borrow your car, it is important to understand whether you could face liability for damages if someone else driving your car causes a crash.

Let’s discuss who is primarily responsible if that happens. 

What Happens When Someone Else Crashes Your Car?

Under Georgia Code § 33-34-4, Georgia is an “at-fault state.” This means the driver who caused the accident is responsible for covering the damages. 

Since insurance follows the car, your liability insurance will cover damages if you gave permission for another person to drive your car. If the damages exceed your policy limit, you may need to pay for the additional costs.  

Your insurance provider covers damages only if:

• The driver is named on your policy
• The driver had permission to drive your car

Permissive Use 

This applies when the at-fault driver had permission to drive your car. Permissive use also includes family members who normally drive your car with your knowledge and approval. 

This is why insurance providers often ask you to list everyone who might drive your car on the policy. If you fail to do this, they may not cover damages in an accident. 

Non-Permissive Driving 

If someone drives your car without your permission and they cause a crash, their insurance company is responsible for covering damages. You may have to prove to your insurance company that the driver did not have your consent to drive your car. 

You can also name specific family members on the insurance policy as prohibited from driving the insured vehicle. Their names will be listed as “excluded.” This means that even in an emergency, they cannot drive your car, and the insurance company will not be responsible for any losses they cause in an accident. 

An excluded driver is someone with a record of careless behavior on the road. They may show signs of aggressive driving, distracted driving, or even have a suspended license. This shows that the person is a high-risk driver.

When Your Insurance May Not Cover the Crash 

As discussed above, if someone borrows your car and crashes it, your insurance company is responsible for coverage. But there are exceptions to this rule:

• You willingly allow an irresponsible, careless, or impaired driver to drive your car
• The driver has borrowed your car many times, and you haven't listed them on your policy as a permitted user
• The person driving your car has been listed as an excluded driver on your policy
• The damages exceed your policy limits

When the Other Driver is Not at Fault 

Even if a crash unfortunately happens, it may not always be the other driver's fault. If another driver caused the accident through negligent or unsafe conduct, that driver may be responsible for the resulting damages. The at-fault driver's insurance may cover the other driver's vehicle damage, injuries, and other losses, depending on the circumstances and available coverage. Evidence such as police reports, photographs, witness statements, and vehicle damage can help establish who was responsible for the collision. 

Key Takeaways

• Auto insurance follows the car, not the driver. 
• Insurance covers damages only if the driver is listed on your policy and had permission to drive your car.
• You can name specific people on your insurance policy as excluded drivers. 
• Willful permission of careless drivers will not attract any compensation from insurance providers. 
• You may be responsible for additional costs if the damages exceed your policy limits.