Getting in an Accident with Someone Else’s Car

July 13, 2018

After lending your vehicle out to a loved one, you find out that they were in a crash.  Despite your kindness, life may kick you down and you now may be liable for the costs. You may want to know what’s next.  Here at Hoyt & Hoyt we have handled numerous cases involving borrowed vehicles and can help give you the information you need to know what’s coming and help you to reduce costs to be paid.

If you want to find out more about your borrowed vehicle accident and what can be done, call Hoyt & Hoyt at (973) 718-7744.

Which Insurance Company Covers the Costs of a NJ Borrowed Vehicle Accident?

Unfortunately for the vehicle owner, insurance company coverage that pays out for borrowed vehicle accidents comes from the policy holder of the vehicle, rather than the one behind the wheel.   The only time the secondary car insurance is used, is if not all costs could be covered by the initial insurance.  Even if the driver has better insurance, this will still be how the process goes. Also, it is common for policy costs to go up and a deductible to be paid before the car insurance company begins covering damages.

As long as you gave permission to the driver, New Jersey auto insurance covers anyone behind the wheel of that vehicle.  If permission was not given, the situation is very different. Although it is difficult to prove otherwise, if a car was borrowed by a friend without asking, any costs besides the damage to the owner’s vehicle will not be insured by the vehicle’s insurance. That means there is no liability when no permission is not clearly given.  Situations like this include your car being stolen or a friend taking your car while you are sleeping. If you gave permission to someone who clearly shouldn’t be driving, the costs fall directly on you (such as someone who was inebriated or not licensed).  

Personal Injury Protection Versus Liability Coverage in New Jersey

New Jersey state follows a “no-fault” system for accidents.  This means all auto insured individuals automatically have PIP, which pays for medical expenses regardless of who was driving.  This is different from liability-style insurance, where the one behind the wheel is liable instead of the policy holder. If the permissed driver is uninsured or does not live with someone else with PIP coverage, the policy holder for that vehicle will be held 100% liable for the damages.

Schedule a Consultation With a New Jersey Personal Injury Lawyer

Hoyt & Hoyt understands that it can be stressful after someone else gets in an accident with your vehicle.  Because New Jersey insurance follows the policy holder over the driver, more costs and stress are evident with out clients.  We will do everything in our power to minimize financial loss or, in cases of non-permission based accidents, help protect you from covering costs.  Contact us today to get a free consultation and the defense you deserve.  

The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.

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