What Happens if Someone Else Is Driving My Car and Gets in an Accident?

Understanding Auto Insurance Coverage and Coverage Limits

Traffic crashes in Michigan increased by four percent in 2022 compared to 2021. In 2022, the Traffic Crash Reporting Unit reported 293,341 car crashes compared to only 282,640 in 2021.

Motor vehicle accidents can happen to anyone, even to careful drivers. Various reasons contribute to every crash, but statistics show that driver error is the chief cause of the majority of crashes in Michigan.

If you let someone drive your car and an auto accident happens, the consequences can be frustrating and problematic. Financial and legal issues may come up. You will need to hire an experienced attorney to help you navigate the legal processes.

In Michigan, every driver is required to have a minimum amount of car insurance coverage. Uninsured drivers could face license suspension, fines, or imprisonment. So, make sure that you have an auto insurance coverage. Even if someone else was driving your car when the accident happened, your insurance company will shoulder the accident expenses. Liability coverage is a crucial part of auto insurance in Michigan, providing protection against financial loss if the insured is responsible for an accident.

Insurance Coverage and Permissive Use

Michigan law, particularly section 257.401, provides: “The owner of a motor vehicle is liable for an injury caused by the negligent operation of the motor vehicle whether the negligence consists of a violation of a statute of this state or the ordinary care standard required by common law. The owner is not liable unless the motor vehicle is being driven with his or her express or implied consent or knowledge. It is presumed that the motor vehicle is being driven with the knowledge and consent of the owner if it is driven at the time of the injury by his or her spouse, father, mother, brother, sister, son, daughter, or other immediate member of the family.” What does this mean? First, the car owner is accountable if a motor vehicle crash happens. Second, if another person is driving when the accident happens, the vehicle owner is liable if the owner allowed the driver to operate the vehicle. Immediate family members are presumed to drive with the owner’s consent.

But what if it is not a family member who is driving but with your permission?

If you willingly allow the person driving your car to do so and this person was involved in a vehicle crash, you are still responsible for that crash. This is called “permissive use.” In an auto insurance policy, you give the person—not named in the policy, or not a household member—permission to drive your vehicle.

However, not all insurance policies covers permissive use. For instance, cars used for business do not usually apply the principle of permissive use. Ensure also that your friend has an unexpired driver’s license if you let him or her drive your car. Otherwise, your insurance company will deny the claim in case of an accident.

Further, in Michigan, car insurance follows the car. This means the owner of the car who is responsible for the insured vehicle. So, if the car is insured, the coverage of the auto insurance policy extends to any person driving your car for as long as the driving is with permission. In the context of permissive use, the vehicle owner’s insurance typically provides the primary coverage in the event of an accident, acting as the first line of financial responsibility before any secondary coverage is considered.

What is the Difference between Personal Injury Protection and Bodily Injury Liability Insurance?

To drive public roads, you must carry a certain amount of your own auto insurance.

In a no-fault state like Michigan, every car owner is required to have personal injury protection (PIP) insurance. As a mandatory coverage, PIP pays for a person’s car accident-related medical expenses and lost wages due to the collision, regardless of who is at fault. PIP may also cover attendant care, medical mileage, and replacement services up to the limits covered by the auto insurance policy.

On the other hand, if the driver is at fault for a car accident that caused death or injury to another, bodily injury liability insurance pays for the damages caused by the accident. The said insurance policy covers the at-fault driver’s liability for the injured person’s pain and suffering in excess of the coverage of PIP. The extent of the amount covered depends on the policy limit.

Who is Liable if Someone Else Wrecks Your Car?

Generally, the driver who causes the accident should be liable for the damages. However, in Michigan, if someone else is driving your car and causes an accident, the liability will be covered by your insurance policy.

There are three possible reasons why this will not happen:

In these cases, the no-fault benefits are not available if the driver gets in an accident. However, when the at-fault driver has their own auto insurance policy, the at-fault driver’s insurance policy will most likely help you pay for the injuries and damage to the extent of the policy limit. Additionally, if the person driving your car is determined to be at fault and has their own insurance policy, the at-fault driver’s insurance may cover damages and injuries.

Seeking Compensation If You Were Not Driving Your Car

Car insurance policies generally pay for the car crash victim’s injuries and property damages. Collision coverage specifically plays a crucial role by covering the cost of repairs to your vehicle after an accident, regardless of who was at fault. This ensures that, in scenarios where your car is damaged, the expenses for fixing it can be managed through your insurance, making it an essential part of your policy for comprehensive protection.

If a friend wrecked your car while they were driving and your friend is at fault, you and your friend driver (through your own insurance company or your friend’s insurance company) may be legally liable. The facts of the case will determine how much you and your friend may be sued for.

It is crucial to seek immediate assistance from an experienced car accident attorney when something like this happens.

How Does Liability Work When Someone Steals Your Car?

If your car gets stolen, it is important to report the incident to the police and your auto insurance company ASAP. Car owners are not responsible for the injuries and damages in case of an accident. However, it is crucial to report the incident to the insurance company to notify them of the situation.

What Car Owners Should Do After a Car Accident

If you permitted someone else to drive your car and it figured in a crash, report the matter to the police. Also, contact a car accident attorney to know your rights to compensation.

Before you speak with your insurance company, speak with a lawyer first. Often, it is best for your lawyer to take care of the insurance matters directly. Your lawyer can help you get the best outcome in your current situation, especially if persons died or were injured.

How a Personal Injury Lawyer Can Help

It can be difficult and stressful if a car accident happens. Talking to a Lansing car accident lawyer can help you navigate Michigan insurance law, especially about the recent changes when it comes to coverage. Insurance companies are not always on your side. Having a lawyer speak to insurance companies can give you the best outcome regarding the situation since lawyers are skilled in negotiations.

Contact The Clark Law Office for a Free Consultation

If you are in this difficult situation, contact The Clark Law Office and speak with a personal injury lawyer. Whether you want to know how to get compensated, or how to file an insurance claim, our experienced attorneys can help you.

The Clark Law Office can assist you in negotiating with the insurance company to ensure that you are rightfully compensated for your personal injury claim. We can also assist you in proving liability in case the other driver is at fault.

Initial consultation is free. Call us now to book an appointment.