Getting into a car accident while driving your own vehicle can be stressful enough, but when you're borrowing someone else's car and you are responsible for a car accident, it can raise a whole host of questions that we'll (hopefully) answer in this article, from insurance coverage to practical considerations.
Whose Car Insurance Covers the Accident?
When you cause an accident in someone else's car, a number of factors will determine who is financially responsible for any resulting car accident injuries and vehicle damage, but no factor will be more crucial than car insurance coverage.
In a typical car insurance policy, the policyholder and the members of his or her household will be covered when driving the insured vehicle, as long as the driver is not a named "excluded driver" in the policy. In addition, a driver who has the vehicle owner's permission to drive the vehicle will typically be covered by the owner's policy even if they are not a member of the owner's household.
However, if you are an "excluded driver" under the owner's policy, or if you are driving the car without the owner's permission, the owner's insurance policy will not afford you coverage, and you will be fully responsible for all damages and injuries caused by your negligence. Whether your own car insurance policy (if you have one) will provide you with coverage under these circumstances cannot be answered in general terms, but will instead depend on the precise language of the policy. You may also look to your homeowners insurance policy or any umbrella liability policies you may own for coverage when there is none to be found elsewhere.
More: What happens if you're in a car accident and you don't have insurance.
No-Fault States and "Personal Injury Protection" Coverage
In the dozen or so no-fault car insurance states, financial responsibility for injuries and other economic losses caused by a car accident typically lies with the injured person's own car insurance company, no matter who caused the car accident. In most no-fault states, that includes medical expenses, lost wages and even the cost of replacement services (household chores the claimant can't perform because of their injuries).
So if you cause a car accident in someone else's car in a no-fault state, and the other driver is injured, their own car insurance will cover the accident as long as the no-fault/PIP limits aren't exhausted and the injuries don't qualify for a liability claim.
But if the accident is serious, and the other driver is able to step outside the confines of the no-fault system and file a car accident lawsuit against you, you'll be on the financial hook for the entire spectrum of car accident damages, including pain and suffering.
Traditional "Fault" States
In fault-based car insurance states, you are responsible for all damages and injuries resulting from your negligence, so the availability of insurance (your own policy or the vehicle owner's) to protect you against claims becomes even more critical. If you are lucky enough to have coverage under the owner's policy, that policy becomes primary and will pay claims up to the insurance limits. Your insurance, if any, will be secondary and will kick in when the primary policy benefits have been exhausted.
Practical Considerations of Getting Into an Accident in Someone Else's Car
Beyond the insurance-related considerations discussed above, there are some practical issues that should also be considered when deciding to drive someone else's car.
First, you should never take another person's car without their permission, because by doing so you risk having no insurance coverage at all if you cause an accident.
Second, even when you have the owner's permission, there will likely be out-of-pocket deductible expenses and car insurance premium increases incurred by the owner as a result of the accident. These are costs that the owner will likely (and perhaps rightfully) be unwilling to bear, so be prepared to reimburse the vehicle owner for them when they arise; failing or refusing to do so could well cause hard feelings, and might even result in a lawsuit.