Can I Be Liable If My Car Was Borrowed?

Find Law Fast Team
Sep 4
2 min read

Lending your car to a friend or family member might seem harmless. But what happens if they get into an accident? Are you on the hook for damages just because your name is on the title or insurance?

The short answer: yes, you can be liable. Here’s how borrowed-car accidents really work.

1. Insurance Usually Follows the Car

In most cases, auto insurance is tied to the vehicle, not the driver. That means:

If someone drives your car with permission, your insurance is the first line of defense.
Your liability coverage may pay for injuries and damages caused in the crash.
If damages exceed your limits, the driver’s insurance may kick in second.

2. When You May Be Held Liable

You could face liability if:

You knowingly let someone with a bad driving record, no license, or intoxication drive your car.
Your state recognizes “negligent entrustment,” which means you were irresponsible in lending out your car.
The driver was acting on your behalf (like running an errand for you).

3. Exceptions to the Rule

There are times when your liability may be limited:

If the car was stolen (obviously no permission given).
If your insurance excludes the driver (some policies restrict coverage to listed drivers).
If the driver has their own strong coverage that pays first in special cases.

4. Why This Matters for You

Lending your car isn’t just about trust — it’s about financial risk. Even if you weren’t behind the wheel, you could be facing:

Higher insurance premiums.
Out-of-pocket costs if damages exceed your coverage.
Potential lawsuits under negligent entrustment.

5. How to Protect Yourself

Only lend your car to drivers you trust.
Check your policy to see who’s covered.
Carry high enough liability limits to protect against worst-case scenarios.
Think twice before casually handing over your keys.

The Bottom Line

Yes, you can be liable if someone borrows your car and gets into an accident. Insurance follows the car, and so can legal responsibility.

👉 If you’ve been injured in a car accident involving a borrowed vehicle, fill out our quick questionnaire. FindLawFast will connect you with the guidance you need.

Disclaimer: This article is for general informational purposes only and should not be taken as legal or financial advice. Insurance coverage and liability laws vary by state and policy. Always consult with a qualified professional for advice.