Your Liability When Someone Uses Your Car
If you let someone drive your car and that person causes an
accident, are you liable for the damages?
In some states, car owners are liable only if they did something
wrong — for example, if they did not properly maintain the car.
However, a growing number of states follow a different rule. They
hold car owners liable for injuries caused by the negligence of
anyone who drives their car with their permission.
In all states, however, you can be liable if you loan your car to
someone you know is a bad driver, underage, drunk, or has no
license. For example, suppose a friend asks to borrow your car. You
know he has no license and is a bad driver. Yet you still lend him
your car — but you tell him to “be extra careful.” He doesn’t follow
your advice, and causes an accident. If the victim makes a claim
against you, you can be liable for his or her damages (the driver
would also be liable).
You could be held liable under a legal rule called “negligent
entrustment.” This means you were wrong to give control of your car
to someone you knew was a bad driver.
Courts can take the rule of “negligent entrustment” far. In one case, a
man loaned his car to someone he knew was an alcoholic. This person
then loaned the car to his friend, who caused an accident. The
victim made a claim against the car’s owner, and a court ruled he
could be liable, since he loaned his car to someone he knew was a
dangerous person for driving and therefore a bad person to have
custody of the car.
These rules are a reminder to be extra careful if you ever consider
loaning your car to someone. To reduce your risk of liability, be
sure the driver has a license and is a good driver. These rules are
also a reminder that accident victims can look to other sources to
recover compensation for their injuries if the person who caused the accident has
no money, insurance or other assets.
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