Owners Are Legally Responsible
In California, the owner of a vehicle can be held responsible if someone else who borrowed their car causes injury, property damage, or death through negligent or reckless driving. The law treats the owner as liable even if they were not driving at the time.
Because insurance follows the vehicle (not the driver), the vehicle’s insurance policy usually applies, whether or not the owner was present.
“Permissive Driver” Rule and Insurance Limits
California has special rules for situations where someone drives a car with the owner’s permission (a “permissive driver”). Insurance policies may reduce what they pay in these cases.
There is a cap on liability when a permissive driver is involved. The minimum insurance amounts set by law are:
- Bodily injury: up to $15,000 per person
- Bodily injury: up to $30,000 per accident
- Property damage: up to $5,000
Vehicle owners should check if their insurance policy has a “step-down” clause, which lowers coverage when a permissive driver is involved.
If You Lend Your Car
If you let someone else borrow your vehicle and they cause an accident, you as the owner are likely responsible for the damage and injuries that result.
Even if you weren’t driving at the time, your insurance can be used to cover the other party’s losses. However, your insurance rates may increase as a result. That is one reason to only let someone you trust drive your car.
If You Borrow Someone Else’s Car
If you drive a borrowed vehicle with the owner’s permission and you cause an accident, the vehicle’s owner is typically liable for damages to the other party. If you were not at fault, then the other party (or their insurance) may be responsible.
If the person at fault does not have insurance or has insufficient coverage, uninsured or underinsured motorist coverage may come into play. If that coverage is unavailable, out-of-pocket expenses may become necessary.
What You Should Know
- Ownership matters a lot. The law treats vehicle owners as having certain responsibilities simply because they own the car.
- Insurance policies often have reduced coverage for permissive drivers.
- If you lend your car, check your insurance policy. Know what it covers and what your liabilities are.
- If you borrow someone’s car, understand whose insurance is primary, how liability is handled, and whether you might need additional protection.
How Hillstone Law Can Help
If you’ve been involved in an accident while driving a borrowed car either as the car owner or as the driver, we can help evaluate who is liable, what insurance should cover, and what your legal options are.
Contact Hillstone Law for a free consultation to discuss your specific situation and to understand your rights.
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Disclaimer: The material provided in these blogs is for general informational purposes only and should not be considered legal advice. Reading these posts does not create, and is not intended to create, an attorney-client relationship with Hillstone Law. Our intent is to share knowledge, raise awareness, and provide helpful resources to the public; however, Hillstone Law makes no warranties or guarantees about the accuracy, completeness, or reliability of the information provided, and expressly disclaims liability for any actions taken in reliance on it. The photos used in these posts are for illustrative purposes only and do not depict actual clients, individuals, or incidents unless expressly stated. If you or a loved one has been injured in an accident, please contact Hillstone Law at (855) 691-1691. Our attorneys are available to answer your legal questions and help you understand your rights.
