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You lent your car to a friend, a family member, or a coworker. Now you have received a phone call that no vehicle owner wants to get: there has been a crash. If someone else is driving your car and gets in an accident, the questions come fast.
Will your insurance cover the injuries and damage? Could you be held personally liable? What if the other driver was at fault? A Chicago car accident lawyer can help you sort through the insurance issues, protect your interests, and pursue compensation if you or the driver you lent your car to was injured.
Key Facts About Lending Your Car in Illinois
- In Illinois, auto insurance follows the car, not the driver, so your policy is typically the primary coverage when someone else causes an accident in your vehicle.
- Permissive use is a pivotal issue: if you gave the driver permission, your insurance applies; if the driver took your car without consent, their own insurance is primary.
- Your personal assets may be at risk if the other party’s damages exceed your policy limits.
- You could face liability under the negligent entrustment doctrine if you knowingly lent your car to an unfit driver.
- Illinois law requires your insurer to extend the same coverage limits to permissive users as to named insureds.
How Illinois Insurance Works When Someone Else Drives Your Car
Illinois operates as a fault-based insurance state. The driver who causes an accident bears financial responsibility for the resulting harm. But when that driver is behind the wheel of your vehicle, your insurance policy becomes the first line of defense.
Under 215 ILCS 5/143.13a, Illinois law requires auto insurers to provide the same liability, property damage, uninsured motorist, and medical payments coverage to permissive users as they do to named insureds. This means if you gave someone permission to drive your car and they caused a collision, your policy must cover the damages up to your coverage limits.
What counts as permissive use?
Permissive use applies when you explicitly or implicitly allow someone to operate your vehicle. Letting a friend borrow your car for errands, handing the keys to a family member for a weekend trip, or allowing a coworker to drive to a lunch meeting all qualify as permissive use. Your insurance covers these drivers as if they were you.
What about non-permissive use?
If someone takes your car without your consent, whether a thief or someone who exceeded the scope of permission you granted, the situation changes. The driver’s own insurance becomes the primary coverage. If that driver has no insurance, you may still need to file a claim under your own policy to repair your vehicle, but you generally would not be responsible for injuries or damage the unauthorized driver caused to others.
When Your Policy Limits May Not Be Enough
Illinois requires drivers to carry minimum liability coverage:
- $25,000 for bodily injury per person
- $50,000 for bodily injury per accident
- $20,000 for property damage
These minimums can disappear quickly after a serious crash. If the person driving your car causes injuries that exceed your policy limits, the injured parties may come after your personal assets. This is one reason many vehicle owners carry coverage well above state minimums.
If the driver you lent your car to also carries auto insurance, their policy may serve as secondary or excess coverage once your limits are exhausted. But this varies by insurer and policy terms. Reviewing your coverage before lending your vehicle can help you avoid unpleasant surprises.
The Negligent Entrustment Risk
Lending your car to someone you know to be an unsafe driver can expose you to liability beyond your insurance policy. Under the negligent entrustment doctrine, vehicle owners may be held personally responsible if they knowingly allow an incompetent, reckless, or unfit driver to use their car and an accident results.
Examples of situations that could trigger negligent entrustment claims:
- Lending your car to someone with a suspended or revoked license
- Allowing a driver you know has a history of DUI convictions to use your vehicle
- Handing the keys to someone who is visibly intoxicated
- Permitting an inexperienced driver to operate a vehicle in dangerous conditions
If a court finds that you knew or should have known the driver was unfit, you could be held liable for damages even beyond what your insurance covers. An attorney can help assess your exposure and defend against these claims.
What If the Other Driver Was at Fault?
If another driver caused the collision, that driver’s insurance should cover the damages, including repairs to your vehicle and any injuries the person driving your car sustained.
However, insurance claims rarely proceed without friction. The at-fault driver’s insurer may dispute liability, delay payment, or offer less than the claim is worth. If your vehicle was damaged or the person you lent it to was injured, you may need to:
- File a claim against the at-fault driver’s liability insurance
- Use your own collision coverage to repair your vehicle while pursuing reimbursement
- Tap into uninsured or underinsured motorist coverage if the at-fault driver lacks adequate insurance
An attorney can manage these competing claims and ensure nothing falls through the cracks.
What If the Driver You Lent Your Car to Was Injured?
When someone borrows your car and gets hurt in a crash caused by another driver, they have the right to pursue compensation just like any other accident victim. The at-fault driver’s liability insurance should cover their medical bills, lost wages, and pain and suffering.
Your own policy may also provide benefits. Medical payments coverage, if you carry it, pays for injuries to anyone in your vehicle regardless of fault. This can help cover immediate medical expenses while a liability claim is pending. If the at-fault driver is uninsured or underinsured, your uninsured motorist coverage may step in to protect the injured borrower.
The person who borrowed your car does not need to own a vehicle or have their own auto policy to pursue a claim. Their status as an occupant of your insured vehicle gives them access to the protections your policy provides.
Excluded Drivers and Policy Gaps
Not every driver who gets behind your wheel is automatically covered. Insurance policies often contain exclusions that limit or eliminate coverage for specific individuals. Common exclusions include:
- Household members not listed on the policy
- Drivers you have explicitly excluded to lower your premiums
- Anyone using your vehicle for commercial purposes without proper coverage
- Drivers operating the vehicle without a valid license
If an excluded driver causes an accident in your car, your insurer may deny the claim entirely. The excluded driver’s own insurance, if they have any, would then be responsible. If they have no coverage, you could be left paying out of pocket for damages, and injured parties might pursue your personal assets.
Before lending your car, confirm that the driver is not excluded under your policy. A quick call to your insurance agent can prevent costly surprises.
What If You Borrowed Someone Else’s Car and Had an Accident?
If you were the one who borrowed a vehicle and got into an accident, the vehicle owner’s insurance typically serves as primary coverage. Their policy would pay for damages up to its limits, assuming you had permission to drive.
If the owner’s coverage is insufficient, your own auto insurance may kick in as secondary coverage. This depends on your policy terms. Some policies extend liability protection when you drive a borrowed vehicle; others do not.
If you do not own a car or carry auto insurance, consider whether a non-owner insurance policy makes sense. This type of coverage provides liability protection when you drive vehicles you do not own, filling gaps that the owner’s policy might not cover.
After any accident in a borrowed vehicle, notify both the owner and their insurance company promptly. Delays in reporting can complicate claims and create disputes over coverage.
Will Lending Your Car Affect Your Insurance Rates?
Lending your car to someone with a clean driving record for occasional use typically will not affect your premiums. However, if the borrower causes an accident, the claim goes on your policy. Insurance companies consider claims history when calculating rates, so an at-fault accident involving your vehicle could lead to higher premiums at renewal, even if you were not the one driving.
Frequent lending to the same person may also raise questions. Insurers expect regular drivers to be listed on the policy. If your company discovers that an unlisted individual drives your car routinely, they may require you to add that person as a named driver, which could increase your premium, or they may decline to renew your coverage.
Steps to Take After an Accident Involving Your Vehicle
Whether you were present or received a phone call after the fact, how you respond matters. Taking the right steps protects your interests and strengthens any insurance claim.
Confirm everyone’s safety and gather information
Make sure the driver and any passengers receive medical attention if needed. Collect details about the other vehicles and drivers involved, including names, contact information, license plate numbers, and insurance details. If police responded, obtain the report number.
Notify your insurance company promptly
Report the accident to your insurer as soon as possible. Provide factual information about what happened without speculating about fault. Your insurer will assign an adjuster to investigate the claim.
Document the damage
Take photos of your vehicle and any other property damage. Keep records of repair estimates, medical bills, and any other expenses connected to the accident.
Consult an attorney if the crash caused injuries or disputes arise
If the person driving your car was injured, if liability is contested, or if damages exceed policy limits, legal guidance becomes crucial. An experienced car accident lawyer can negotiate with insurance companies, identify all available coverage, and pursue compensation on your behalf or the injured driver’s behalf.
Common Questions About Liability for Lending Your Car
Your policy typically covers drivers you give permission to use your vehicle. However, excluded drivers, unlicensed drivers, and those using your car for unauthorized purposes may not be covered. Check your policy or contact your agent to confirm who qualifies for coverage.
If an unlicensed driver causes an accident in your vehicle, your insurance company may deny the claim. You could be held personally liable for damages, and the injured parties might pursue your assets directly. Lending your car to an unlicensed driver also exposes you to potential negligent entrustment claims.
Yes. If damages exceed your policy limits or if your insurer denies the claim, injured parties may file a lawsuit against you personally. Under the negligent entrustment doctrine, you could also face liability if you lent your car to someone you knew was unfit to drive.
If someone else was driving your car and you were a passenger when an accident occurred, you may pursue compensation from the at-fault driver’s insurance. Your own medical payments or uninsured motorist coverage may also apply. As a passenger, you are not at fault, which strengthens your claim.
The vehicle owner’s insurance serves as primary coverage for your injuries. If their policy limits are insufficient or the at-fault driver is uninsured, your own auto policy’s uninsured or underinsured motorist coverage may help fill the gap. You have the right to pursue compensation for your medical expenses, lost income, and pain and suffering.
Take Control of Your Situation with Our Chicago Car Accident Lawyers
Denials are not always final. An attorney can review the denial, gather additional evidence, and negotiate with the insurer. If necessary, you may file a lawsuit to recover the compensation you are owed.
When someone else is involved in a crash while driving your car, the insurance and liability questions can get complicated quickly. The attorneys at Walner Law have been helping Chicago residents resolve car accident claims since 1961, recovering over $1 billion for injured clients. Call us today or contact us online for a free consultation to discuss your situation.
