You may lend your car out to a friend or family member without much thought, but what happens if someone else is driving your car and gets in an accident in Texas? As the vehicle owner, you could be responsible for navigating the insurance process even when you are not driving. Learn what to expect from your insurance policy and how liability works in these scenarios.
What Happens If Someone Else Is Driving My Car and Gets in an Accident in Texas?
If someone else drives your car and gets into an accident in Texas, your car insurance usually covers the damages, but liability is a different story altogether. Texas is an "at-fault" state, and what this means is that the party at fault in an accident is liable to pay for damages. Here's what you should do in case such an incident occurs:
- Check for Injuries: Make sure everyone is safe. Call 911 if anyone needs medical attention.
- Contact the Police: Texas law requires that you report all accidents resulting in injury, death, or substantial damages to property. Let the driver provide accurate information to the police authorities.
- Exchange Information: Names, contact information, insurance information, license plate numbers of all parties are necessary.
- Inform Your Insurance Company: Do not hesitate to report the incident to your car insurance company, even if you were not the driver. Provide information about the accident and who was driving.
- Document the Scene: Ask the driver to take photos of the damage, location, and contributing factors, including weather conditions or road obstructions.
Your insurance should cover the damages if the driver had permission to use the vehicle. However, your policy may have specific exclusions that apply. It is always a good idea to check your policy details to ensure coverage applies for this scenario.
In addition, if the driver was a member of your family residing in your home, then they are probably already on your insurance. That way, any claim goes through rather smoothly. On the other hand, if the driver was not on your insurance policy and he or she had taken your car without express permission, an insurance company would further investigate a claim. Taking these proactive steps will keep you from headaches later.
Insurance Covers the Car, Not the Driver
It is a common misconception that the auto insurance a driver pays for covers the driver. In reality, auto insurance covers the car. This means no matter who was driving your vehicle, your car insurance company has to pay for damages. Unfortunately, this can mean paying a large deductible and dealing with an increase in your insurance premium – even if you were not the driver involved in the accident.
What If the Driver Was At Fault?
If the driver of your vehicle was at fault, your automobile insurance policy is generally primary for any resulting damages. If your policy limits are not adequate, then the driver's insurance may be secondary. Some things to consider:
- Liability Coverage: This is the insurance that pays for the damages to others in Texas. Your insurance will cover this up to your policy limits.
- Collision Coverage: With collision coverage, it will pay for the damages to your vehicle regardless of fault in all cases. You will only need to pay your deductible amount.
- Policy Exclusions: If the driver did not have your permission to use the car, or if he/she was excluded in your policy, then your insurer may refute any claim. Check your insurance documents for coverage limitations.
For example, if your friend to whom you lent your car was driving when the accident happened, his driving record would not affect your insurance policy, but the claim would increase the rate of your policy.
Also of the essence is the knowledge about liability limits. If damages go beyond the maximum of a given policy, the other party may sue for more against the at-fault driver. This is where umbrella insurance can add more protection to financial risks in such cases.
Similarly, here in Texas, the insurance company requires full cooperation with regard to the claim process. A lack of proper information or displaying reluctance may defeat its resolution. Let the at-fault driver provide correct information to both the police and the insurance adjuster.
What If the Other Party Was At Fault?
If the other party was at fault, then his insurance needs to cover the damages to your car and all other related expenses. In Texas, the liability insurance of at-fault drivers usually covers:
- Property Damage: Pays for vehicle repairs or replacement if totaled.
- Medical Expenses: Covers injuries sustained by you or passengers.
Steps to take:
- File a Claim: Contact their insurer with accident details to request compensation.
- Use Your Coverage if Necessary: Turn to uninsured/underinsured motorist coverage when the at-fault driver does not have adequate insurance.
- Legal Action: Consult an attorney about whether claims are being denied or are inadequate.
Keep detailed records of all expenses related to the car accident, including medical bills, repair costs, rental car receipts, and any other associated fees, to strengthen your claim. Maintaining organized documentation ensures you’re fully prepared during negotiations with insurance companies. Uninsured motorist coverage, though optional, is highly recommended due to the significant number of uninsured drivers in Dallas, offering essential financial protection when the at-fault driver lacks coverage.
Additionally, Texas' modified comparative fault rule may further reduce your compensation by the percentage of your fault in the accident. To protect your rights, your statements, evidence, and records should clearly establish the other party's responsibility.
First-Party vs. Third-Party Insurance Claim
In Texas, the car insurance of the party at fault for causing the collision is financially responsible for damages. If your friend was at fault for causing the crash, therefore, your auto insurance company will pay for victims’ medical bills and property repairs. You will need to file a first-party insurance claim with your own insurance provider for coverage. How much your insurance company pays for the accident will depend on your policy.
If you only have the minimum required amount of liability insurance in Texas, your insurance carrier most likely will not pay to repair the damage to your own vehicle. The minimum required amounts of automobile insurance only pay for the damages of others in a crash. You must have an additional form of coverage, such as collision or comprehensive insurance, for coverage for your own car. If you do not have this insurance, the insurer of the person you let use your car should pay for your losses.
If the person you let borrow your car was not at fault for the accident, you will seek financial compensation from the auto insurance carrier of the at-fault party. You will file what is called a third-party insurance claim against the other driver's carrier in pursuit of compensation for medical bills and vehicle repairs. In this scenario, your own insurance premiums should not increase, as your company did not pay for the damages.
Primary and Secondary Insurance Coverage
A car accident when someone else is driving your car may involve both primary and secondary insurance. Primary insurance coverage is your insurance policy as the vehicle's owner. Secondary insurance is the automobile policy of the person who was driving your car. As the owner of the vehicle, your insurance policy will provide the primary (first) coverage for related losses. If you do not have enough insurance to cover 100% of the damages, the driver’s liability insurance will provide secondary coverage.
For example, if the victim of the car accident suffered $35,000 in medical expenses but your auto insurance policy only covers up to $30,000, the person who was driving your vehicle will cover the remaining $5,000 through his or her auto insurance policy. Primary and secondary auto insurance work together on cases involving a vehicle owned by one party but driven by another to fully cover a victim’s losses.
Potential Challenges With Your Claim
For the most part, your auto insurance company will cover someone else driving your car. If, however, the person driving your car did not have your permission to do so, such as in an incident of theft, your insurance may not cover the driver. Coverage would come from the at-fault driver’s insurer instead.
If you are guilty of negligent entrustment, you could also encounter challenges. If you knowingly allowed an intoxicated individual or unlicensed driver to drive your car, for example, someone injured in a subsequent accident may be able to hold you personally responsible for the collision as well as seek damages from the at-fault driver’s insurer.
Contact a Car Accident Lawyer Today
Due to the complexity of these types of cases, it is wise to contact a Dallas car accident attorney to discuss your rights. An attorney can help you navigate the insurance claims process in Dallas to fight for your compensation.