Question: I loaned my car to a friend. In a wreck, do I have to pay?

JASON: It might surprise you, but the state of Alabama says you have given a dangerous instrument to another person. Therefore, you can be held responsible if something terrible happens. This is no different than if you gave a person a gun, a bomb, or anything else that could be used to hurt someone.

Now, before you grab back your keys or hide your F-150, know that insurance plays a big part. In Alabama, car insurance follows the car. If you have state-mandated insurance, your insurance will pay for injuries to the driver and passengers that your friend hit. It will also pay for the damage to their car. If you have additional insurance, it can cover your friend’s injuries and repairs to your car.

If your friend has insurance, it may kick in, but only after your insurance has maxed out. Of course, your friend can pay for everything out of their own pocket. But let’s face it—your friend borrowed your car, so he or she probably doesn’t have a lot of cash.

A good lawyer can do many things to help. I have been able to use insurance policies the car owner had on other cars to pay expenses. I have even gotten homeowners insurance to help pay, but this is tricky and depends on your circumstances.

Let me mention another thing Alabama takes very seriously. If you loan your car to someone you know shouldn’t drive, you could face a variety of legal problems. Some examples include knowing of the driver’s drinking problems, a history of reckless driving by the borrower, mental issues that made the driver unreliable, and knowing your friend does not have a valid license.

Here is another question I am often asked: Do I have to be present when the accident occurs for my insurance to be responsible? No.

In summary, when someone borrows your car, they are borrowing your insurance. Loan both wisely.

Car wrecks in and around Mobile and Baldwin Counties seem to be on the increase. If you have concerns, don’t hesitate to call us. The call will cost you nothing. My advice is to act quickly. As time passes, evidence can easily disappear, and witnesses can become more difficult to locate.

Jason Steele

Personal Injury Attorney in Mobile, AL

Talk to me for free    (251) 666-1212

The post An Accident When a Friend Uses Your Car. Who Pays? first appeared on Steele Ritchie.