If a friend crashed your car in Colorado, your insurance is usually the first to pay, because the policy is attached to the car, not the driver. If your friend was at fault, anyone they injured can file a claim with your insurance company. You could also face a separate negligent entrustment claim if you knew your friend was unfit to drive.
Maybe a friend needed to borrow your car for an errand or a weekend trip, and they got into a crash. Who is at fault? What happens with your insurance? How do you proceed? This article will discuss these questions and help you protect yourself in this situation.
| Person | What to know |
|---|---|
| Vehicle owner (you) | Your insurance policy is attached to your car, so it is involved even if you were not driving. If your friend caused the crash, your insurance would need to cover the damages. You could also face a negligent entrustment claim if you knew or should have known your friend was unfit to drive. |
| Driver (your friend) | If your friend caused the crash, they are at fault. Their own personal insurance may add coverage if yours is not enough. If another driver caused the crash, your friend’s injury claim is with that driver’s insurance. |
| Injured person | Anyone hurt because of your friend’s driving can submit a claim to your insurance company. If your coverage is not enough, they may file a personal injury suit to recover further damages. |
Whose Vehicle and Insurance Policy Are Involved?
It can be confusing to try and determine which insurance company to turn to if someone borrows your vehicle and gets in a crash. The insurance policy is actually attached to a vehicle, not a person. (Unless you are talking about underinsured / uninsured motorist coverage which follows the person not the car, but more on that later…) So if your car were in a crash, your insurance policy would be involved, regardless of whether or not you were driving at the time of the crash.
If your friend was the cause of the crash, anyone who suffered injuries could submit their claims to your insurance company. If your friend was injured and it was through the fault of another driver, compensation for injuries would be between your friend and the insurance provider of the other drivers involved in the crash. However, the damage to your vehicle would be between you and the other driver’s insurance.
Who Is at Fault?
This question becomes imperative due to the uniqueness of this situation. Typically, when driving your own vehicle and getting into a crash, you would file a claim against the other driver’s insurance to recover vehicle damages if they are at fault. The same applies if your friend gets into a crash with your vehicle, only the friend may feel less urgency in the matter as it is not their vehicle.
How is fault established? If your friend was proven to be texting while driving, intoxicated, or recklessly driving, for example, and this led to the crash, they would be at fault for the crash. The unfortunate outcome is that your insurance will cover these oversights (and any damages) on your friend’s behalf because it was your vehicle they were operating at the time.
Colorado is a fault-based state. Fault-based means that all drivers must carry a certain level of insurance coverage so they are prepared to cover other drivers after a crash in bodily injury, property damage, and total crash liability. Being a fault-based state, it also means that the injured party can file a claim against the insurance company of the driver at fault to obtain compensation for personal injuries.
What if the At-Fault Driver Doesn’t Have Adequate Insurance?
As the insurance policy follows the car and not the driver, the policy of the vehicle driven that was at fault is ultimately responsible for damages. If a friend borrowed your car and they were at fault for a crash, your insurance would need to cover any damages.
What if your coverage isn’t sufficient? In some cases, your friend (as the driver) may include their own personal insurance as additional coverage, or the other party may file a personal injury suit to recover further damages.
It can be exhausting to follow the trail of which insurance covers what in these situations. Working with an attorney can help you navigate who to speak with, what information you need from which insurance company, and negotiate settlement outcomes.
What Is Negligent Entrustment?
When lending a car to a friend, it is crucial to understand its ramifications. If your friend is at fault for a crash, you may open yourself up for a negligent entrustment claim.
Negligent Entrustment is a separate claim that can be brought against the owner of the vehicle in an attempt to recover damages. If you, as the vehicle owner, knew or should have known that your friend was unfit to operate your car, and this can be proven, you may be subjected to a negligent entrustment claim. Examples of this are if you know that your friend was intoxicated, has a documented history of drunk driving, or reckless driving, does not have a valid license, has physical or mental impairments that affect their driving abilities, and more. Should you be aware of these examples and allow your friend to drive anyway and they injure someone else, you may be liable through negligent entrustment.
Related Reading
- Hit by a Stolen Car in Colorado: Insurance and Injury Claims
- How Is Fault Determined After a Colorado Car Crash?
- Hit by an Uninsured Driver in Colorado: Your Options
Talk to Greer Law Group About a Borrowed-Car Crash
Crashes can be scary and frustrating, and when your vehicle is involved but you aren’t, it can create another level of frustration. The inherent need to protect ourselves is essential, but sometimes we don’t know how to effectively do this on our own. It can be crucial to consult an attorney in this situation. Someone who has experience and compassion and can help to ensure that you are protecting yourself to the best of your ability against claims or lawsuits that you may be subjected to.
An attorney can help you to negotiate with insurance companies and help you to avoid saying or doing something that opens you up to more liability. They can help you to establish fault so that the proper parties are held accountable for the crash. Attorneys can investigate eyewitnesses and collect data about the crash site and external factors such as weather, traffic, road conditions, and more.
You don’t have to navigate this process alone. If you lent your car to someone who crashed it, or you were seriously or permanently injured by a driver using someone else’s car, call our office at 303-331-6460 or contact us online to get your specific questions answered.
