Who Pays When Someone Borrows a Car and Hits You?

“I was hit by someone driving a borrowed car. Whose insurance pays for my injuries?”

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There is a lot of confusion around this question for injured parties, drivers, and vehicle owners. These situations can lead to contentious claims and numerous challenges recovering your damages. 

Despite what a vehicle owner may argue, their insurance company does very likely owe coverage if their borrowed vehicle is involved in an accident. Insurance follows the car in Georgia, and the car owner’s insurance policy provides primary coverage for your damages and injuries. If your losses are over these limits, the driver’s insurance may step in as secondary coverage to cover these additional damages. 

If you or a loved one has been injured in an accident involving a borrowed car, taking quick action to preserve your right to compensation is crucial. At The Millar Law Firm, our team is experienced at handling borrowed car claims and fighting for our clients’ rights to a fair settlement.  

Getting Compensated: Owner vs. Driver 

The golden rule of auto insurance coverage in Georgia is that insurance follows the vehicle. This means that after a borrowed vehicle accident, any claim for damages will be made with the owner’s insurance. This is because the driver of a borrowed vehicle is a “permissive user,” and under Georgia law, permissive users are considered "additional insureds" under the owner's policy through what is called an "omnibus clause." 

If your injuries are severe and the car owner's policy limits are not enough to cover all of your damages, the driver's personal auto insurance would step in as "excess" or "secondary" coverage. This is sometimes referred to as "stacking" of insurance policies and can be crucial for recovering fair compensation for your losses. 

What This Rule Means for Your Injury Claim 

If you were hurt in a Georgia borrowed car crash, understanding this rule is crucial for several reasons. 

1. You do not necessarily have to find the driver's insurance information. The vehicle owner's insurance is primarily responsible, potentially making it easier to identify the correct insurance company. 

2. There is potentially more coverage available in severe cases. With two possible insurance policies (the owner's and the driver's), you may have a better chance of receiving full compensation for serious injuries. 

3. You still have a claim even if the driver is uninsured. Even if the person who hit you does not have insurance of their own, the vehicle owner's policy should still cover your injuries. 

How This Works in Real Life: The Case of Sarah and Mike 

Let's consider a realistic example: 

Sarah lends her Honda Accord to her friend Mike, who needs to run some errands. While driving Sarah's car, Mike runs a red light and hits your vehicle, causing injuries requiring medical treatment. 

In this scenario: 

• Sarah's auto insurance policy (the car owner) will be primarily responsible for paying your injury claim, up to her policy's liability limits. 
• Mike's auto insurance policy (the borrower) would only come into play if Sarah's coverage limits are exceeded. 

Since Sarah's insurance covers Mike because he was a permissive user, you would file a claim with Sarah’s auto insurance. As mentioned, if your damages exceed the primary policy limits, a claim may also be made with Mike’s insurance for secondary coverage. 

What If the Car Was Taken Without Permission? 

It is common for injured people to worry about insurance coverage when the vehicle is driven by someone other than the owner. Under Georgia law, the question of permission is critical, and if the car was taken without the owner’s permission, recovering damages becomes complicated. 

The difference between “permissive use” and “non-permissive use” in borrowed car accident cases is critical to a successful claim. If the driver did not have the express or implied consent of the vehicle owner, an insurance company may be able to lawfully deny liability coverage under the owner’s policy. 

What is Express and Implied Permission? 

• Express permission gives the driver clear consent to use the car. This authorization may be verbal or in writing. 
• Implied permission can be trickier. Showing implied consent often means proving a pattern of conduct or a relationship between the parties, suggesting the owner routinely allows the driver to use the vehicle. For instance, a family member who frequently borrows the vehicle with no objection. 

When a vehicle is stolen or when someone exceeds the scope of given permission (like taking a car on a road trip instead of an authorized trip to the grocery store), Georgia law allows insurers to argue that no coverage applies. A denial of coverage in these situations means proving a clear lack of consent, and the burden of proof generally falls on the insurance company to show the vehicle was used without the owner’s permission. 

While most legitimate borrowed-car situations are covered by the owner’s insurance in Georgia, a lack of permission could void this coverage. Consulting a car accident attorney can be critical to navigating these situations and determining options for recovery. 

Georgia Borrowed Car Accidents Should Not Result in No Compensation for You

In many cases, when someone borrows a car and causes an accident, the vehicle owner's insurance policy is primarily responsible for covering the injuries to others. This "insurance follows the car" rule provides important protection for accident victims, ensuring there is coverage available to help with your recovery. 

Understanding this fundamental rule can help you navigate the claims process more confidently during the challenging time after an accident. Our experienced injury lawyers may assist you with your claim and determine what paths to compensation are available. Contact us today for more information and to schedule a free case evaluation.