Liability insurance follows a car first and driver second. That means the car owner's policy covers the driver and all passengers in the other vehicle for bodily injury. The car owner's liability also covers property damage caused by his or her car. Liability insurance also covers the cost of your legal fees in the event that you are sued. Liability coverage is required in almost all states, but minimums vary dramatically. This will quickly be eaten up by medical bills and possible legal fees. Most industry experts recommend carrying much higher limits.
Here's why. If the damage exceeds your insurance liability limits, the courts can attach your personal assets, such as your home, to recover damages. Liability coverage won't pay for damages beyond the limit for which you are insured. If your liability limits are not enough to cover all the damages inflected on the other party, your friend's auto policy may be looked at secondary coverage. Cases in which you and your friend's insurance policies share the cost of the accident are known as "pro rata.
However, some insurers will pay the entire amount of damages and then seek compensation from your friend's insurer to recover the amount not covered by your policy. If your friend was injured and has on his auto policy personal injury protection PIP , he would claim against his policy for this.
Lending your car to an uninsured friend can land you in a world of hurt. In this case, your uninsured friend has put you in a really bad spot.
If the damage your friend causes exceeds your policy limits, the injured party can come after you for medical and property-damage expenses. Once your policy limits are reached, the injured party can sue you and come after your personal assets to cover medical bills as well as property damage expenses. This means, your house, savings, retirement assets can be in jeopardy. Letting a friend that doesn't have a valid license, either without one altogether or under suspension, is a bad idea. Many car insurance policies include an exclusion of coverage if the driver of your vehicle doesn't have a valid license.
And if he doesn't have a license, it's doubtful he'd have auto insurance. This would leave you and your friend responsible for any damages he caused in an accident. You can say it wasn't you driving, but car owners have vicarious liability for anyone they allow to use their vehicle.
Basically, this means you can be held liable along with the driver for their actions behind the wheel. You're not likely to be held accountable for the damages because your friend borrowed your vehicle without your knowledge.
In this case, your friend's insurance assuming he or she has it will kick in first. If your friend is uninsured , you'll probably need to use your collision insurance to cover the damages to your own vehicle and your liability insurance may cover damage to others' property.
Bear in mind that insurance companies will assume a friend has permission to use your car unless there are clear indications that you denied permission, such as a drunken friend who drives away in your car without your knowledge or authorization.
In a perfect world, the damages and expenses that result from car accidents would always be covered by the driver who is at fault. When accidents with uninsured drivers occur, motorists who have insurance coverage but are not at fault may be unsure who is required to pay for damages.
Without proper legal guidance, these situations can become very complicated and stressful for individuals who simply want to get healthy and recover compensation for medical bills and vehicle damage. Rather, they must simply demonstrate financial responsibility in at least one of four legally acceptable ways, which are as follows:.
Technically speaking, if you are unable to recover compensation from an uninsured driver who caused your accident, you must cover your accident-related expenses for the time being — unless your auto insurance policy includes Uninsured and Underinsured Motorist Coverage. Your insurance company will likely ask for proof of your injuries, medical treatment, and damage to your vehicle, and conduct an investigation.
If you feel as though your insurance company is devaluing your claim, you may want to hire a car accident lawyer, as they are familiar with negotiating with insurance companies and can litigate the case if the insurance company is not being cooperative.
Not every state requires uninsured or underinsured motorist coverage, so not everyone will have it. If you do not, you have the option of filing a lawsuit against the at-fault party. A car accident lawyer can assist you and offer guidance. They can really benefit your case as they want you to see the best possible results. They will determine what is in your best interest to do. The goal is obviously to be compensated for damages you suffered through no fault of your own, and a lawyer may be able to help make that happen.
You want to be knowledgeable about what happens if the at-fault party does not have car insurance. Ben Crump Law, PLLC is here for you when you experienced an accident with an uninsured or underinsured driver and want legal help.
You should not have to pay out-of-pocket expenses for your medical treatment. Call today for your free case evaluation at Get your free case evaluation now!
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