Buying Car-non Relative Driving

[Crabcake Johnny]

I'm obviously talking about charges being filed. If I'm driving drunk and cause an accident that's on me. I'm not sure but I'll check to see if my wife would be in any legal hot water - doubtful.

I'm not exactly sure how that would play out: "Lisa? Your husband just caused an accident. Turn around and put your hands behind your back."

Now, if as a result of the accident I caused the victim comes after me through a civil proceeding that obviously affects my wife since assets are joint.

 

[bobson]

I'm obviously talking about charges being filed. If I'm driving drunk and cause an accident that's on me. I'm not sure but I'll check to see if my wife would be in any legal hot water - doubtful.

I'm not exactly sure how that would play out: "Lisa? Your husband just caused an accident. Turn around and put your hands behind your back."

Now, if as a result of the accident I caused the victim comes after me through a civil proceeding that obviously affects my wife since assets are joint.

We aren't talking about criminal charges. Your car insurance won't provide you any criminal defense if you are charged with a crime like negligent homicide or vehicular manslaughter.

This discussion is about liability claims. If you lend someone your car and they kill someone you can bet you will be named in the lawsuit. Heck, if you lend someone your car and they cause a fenderbender you will be liable as the vehicle is yours.

 

[agentjaf]

Not sure how every state works, but in Minnesota, the insurance follows the VEHICLE, not the driver. So as long as the vehicle has coverage and you give the driver permission to operate it, there is coverage. However, there could be legal ramifications that come back to you as the owner and the insurance policy holder even though you were not the one operating the vehicle....

 

[Crabcake Johnny]

We aren't talking about criminal charges. Your car insurance won't provide you any criminal defense if you are charged with a crime like negligent homicide or vehicular manslaughter.

This discussion is about liability claims. If you lend someone your car and they kill someone you can bet you will be named in the lawsuit. Heck, if you lend someone your car and they cause a fenderbender you will be liable as the vehicle is yours.

Ok, so I called my bro about this (attorney for 30+ years.)

Say I lent my car to my best friend. He's indeed covered under my insurance while in the car. Now, say he hits and kills someone.

First of all, anyone can sue anyone. Let's get that out of the way. The family of the person my friend killed can name me if they want but they have to show contributory negligence on my part to win an award.

A) I lend my friend the car after he had too many drinks
B) I have knowledge (that can be proven) that my friend is a reckless driver. Maybe I know he caused 3 accidents last year
C) etc...

Their attorney will try their best to show that you should have never lent him your car but the burden of proof is on them, not you. They'd have to convince a jury that "no reasonable person" would have lent your friend the car.

However, absent of that - say my friend's a good citizen, good driver and I had no knowledge that lending him the car could result in an accident they would not get an award from me.

 

[bobson]

say my friend's a good citizen, good driver and I had no knowledge that lending him the car could result in an accident they would not get an award from me.

Would your brother put that in writing? I get calls once in a while from customers and they ask me if they should let their friend drive their car for whatever reason. I always explain that my customer is risking his financial security for his friend if he does.

If I had a letter guarenteeing my customers wouldn't wouldn't lose in a lawsuit if something happened it would be a much easier conversation. I'll even pay for his letterhead.

 

[Crabcake Johnny]

Anyone can sue anyone. I can't imagine that if someone filed a totally frivolous lawsuit any attorney would put in writing that you have nothing to worry about.

I led my friend my car. To my knowledge he's a good driver. He gets in an accident and causes damage and I'm named in the suit.

Fine, but my point is they're only getting an award from me if they can prove that the act of me lending him the car was negligent.

But...I agree with you. Want to avoid all of that hassle? Don't lend anyone your car.

 

[djs]

I'd write up an agreement and have him get his own insurance. You can be named in a lawsuit, unlikely it will get far, unless it can be shown that you contributed to the accident.

This discussion is more in play when you have a minor driving, where the parents are still responsible. As adults, hopefully we can be responsible for ourselves, and if not, the government will take care of us.

Dan

 

[JoeyRock58]

I would really check with your insurance company for you do anything

 

[Aydin]

In Michigan, if your name is on the title, you are liable. It does not matter if you have never even seen the car.

 

[JasonH]

The answers may be different with your company but for the company I work for these are the answers.

I can put the car under my policy, no problem. But what liability does that NOT cover for this other person not driving?

To insure a car on your policy the car needs to be in either you or your spouses name. Unless you have a purchase agreement and the title will be switched to your name at some point. For example you would be paying their loan payments and when the car is paid for the title will be switched to your name.

Does auto insurance cover the liability for anything the car is responsible for, or does the insurance cover the Person? The coverage on your car covers anyone who is driving your vehicle (if you loaned it on occasion). However, if someone is considered a regular operator then they would need to be rated on your policy( usually a member of your household that has regular access to the vehicle).

Right now, they have insurance, but also for economic reasons, they want to cancel that. Due to the economy it is very common for people to call in saying they want to insure someone else's vehicle. Under this circumstance it is possible to insure another persons vehicle but the person who owns the vehicle still needs to rated as a driver since they have ownership. This is normally a situation when someone is taking over payments.

Example
My car, with insurance. The driver is a friend without insurance. Friend is driving and gets into an accident. What am I, as the car owner liable for? (just assume normal collision, deductible and uninsured motorist on my policy) The claim would be covered under your policy and you could be held liable for anything above and beyond your policy limits.

And...what is this person does have some sort of policy that covers them driving, just not a specific vehicle? This is called a Named Non Owner or NNO policy and most states they are not offered. The ones that do offer them usually don't offer them to someone who will be driving another persons vehicle on a regular basis and it is liabilty only no comp or collision.