Help! A friend crashed my car: What should I do?

From time to time a friend would request to borrow your vehicle, and you lend it. Have you considered who might pay on the off chance that he got into an accident?

Letting a family member or a friend borrow your vehicle is a common occurrence. Family members may even share only one vehicle, while it is only registered and insured to only one member of the family.

While there is nothing wrong with letting someone borrow your car, it is also essential to know the consequences if that person would be in an accident. If this happens, the owner may be liable for the damages.

Car insurance follows the car, not the driver. So, it will be your car insurance that will cover all the damages. When filing your claim, the accident will cause your rate to go up. Before you choose to decide to let your friend borrow your car, think about what it could do to your finances. 

Read on to find some tips from Philkotse.com on how to deal with the situation.

Who will cover all your damages?

1. Report the accident to the police  

After ensuring that your friend or a relative who borrowed your vehicle is all right, make sure that there is a police blotter filed. Ideally, the borrower or the other parties engaged in the accident inform the authority. If not, be proactive and make sure to call the police and report the incident.

Once this is done, make sure to get a duplicate copy of the incident report. The incident report will be significant when documenting a case, especially if anyone in the accident was injured or the car was damaged.

Always report an accident and get a copy of the incident report

>>> Also check out what to do during a vehicular accident. 

2. Call your insurance company

You should contact your insurance agency right away and check your policy. You should know who and what is covered under the contract when your vehicle is involved in an accident where you are not the driver.  Who are the persons included in your insurance policy may vary, typically:

• Anybody in your family who has a legitimate drivers license  
• Permissive drivers, those to whom you gave your consent to drive your vehicle
• Rejected or excluded drivers or those drivers that you specified in your policy when you purchased your insurance are not covered.  

Call your insurance provider to know your coverage in an accident

Adding to these, if you did not give the driver consent to borrow your vehicle, you might not be held liable for damages. This situation is when you are the victim of auto theft, or your companion takes your car without your permission.

As a rule, your vehicle insurance agency handles everything that happens to your vehicle, yourself and, except for the persons who utilize your vehicle without your consent, any other individual who uses the vehicle.This implies that when you loan your car, you are likewise loaning out your insurance.

If that person crashes your vehicle after they borrow it from you, your insurance may likely pay out. Keep in mind that you, not the person, will pay the deductible, you will lose the no-claim reward.

Before you feel consoled, remember that there is a limit that you are allowed to claim in your insurance. If your friend crashes your vehicle and causes a significant amount of physical damage to anyone outside your car, your insurance agency will pay only your insurance limit. From there, you will be responsible for whatever the injured party wishes to claim beyond that.

>>> Must read: Car smart: Filing a Compulsory Third Party Liability (CTPL) insurance claim

3. Talk to your friend

Discuss with your friend their insurance inclusion and responsibilities. Here in the Philippines, normally, when a friend borrows your car, we do not ask if they have insurance as long as they have a drivers license.

In case an accident happens, disagreements about money can be hard on friendship, so think carefully. Your friend will be responsible for their actions and help you with the financial-related concerns like repair and liability.

Prepare for a serious conversation with your friend

There is the exclusion of coverage for many car insurance companies, like if the driver of your car does not have a valid drivers license. If he does not have one, they might not have car insurance either.

These would leave both of you responsible for the damages that he caused during the accident. You can say it was not you driving, yet vehicle owners still have the obligation for anybody they permit to use their vehicle. These means that you can also be held liable for their actions behind the wheel.

4. Consider hiring a lawyer  

You should ensure that your friend who is driving your vehicle has a legitimate drivers permit at the time of the accident and that they have their insurance. If they do not have any of those, at that point you may need to consider hiring a legal advisor to help.

It can be you who will be liable and can be sued for damages so you may require help in fixing the situation.

Seek legal assistance to know your right 

5. Tips to consider before lending your car

• If your friend crashes your vehicle while intoxicated, similar conditions apply as when you hit your very own vehicle while impaired, in particular, your insurance agency is probably going to decline to pay out your case for damages. Your premiums will likewise increase since you can be listed as a seriously irresponsible driver.
• If your friend does not have a drivers license, borrows your vehicle and then crashes it, your insurance agency most likely will not pay your claim, and your premiums will rise. These holds regardless of whether your friend driver's license is temporarily suspended.

This likely without saying, always be careful about who you lend your vehicle. You should only let persons that you know and trust drive your car, even only for short trips or errands. Auto collisions can happen anyplace, anytime.

Get a copy of the accident report for documentary purposes and your protection

>>> Visit Philkotse.com for more safe driving tips