Car Borrowing Series: Liability on Borrowed Vehicles

Even though most auto insurance policies have some level of coverage regarding accidents caused by people other than the owner of the vehicle, ultimately the owner is liable for the expenses associated with an accident.

Car Owners Responsible

Generally, the owner of the vehicle is the person listed on the registration and vehicle’s insurance policy. If another person borrows the vehicle and is involved in an accident, the person held accountable for the financial debt incurred is the owner of the car in question.

Liability Rule Exceptions

Of course there are some exceptions to the rule. If a friend borrows a vehicle without the consent of the owner and drives under the influence, the owner will be protected from their lack of judgment. Additionally, if the car is stolen and involved in a collision, damages to others and their property will not be the car owner’s responsibility. However, they will probably have to use their collision insurance to pay for the repair to the vehicle.