Who Is Liable in a New Jersey Car Accident With a Borrowed Car?
If a car accident occurs in New Jersey and one of the drivers involved is not the owner of the car, but had borrowed it from someone else, this could complicate an insurance claim. In general, insurance is tied to the car, not the driver. Navigating this type of claim may require assistance from an experienced car accident attorney in New Jersey.
New Jersey’s No-Fault Law
Liability refers to someone taking financial responsibility for injury or harm caused to others. In a car accident case, determining who is liable for the victim’s injuries and property repairs takes an understanding of New Jersey’s insurance laws.
New Jersey, unlike most other states, is a no-fault state. With this insurance system, all motor vehicle drivers are required to have personal injury protection (PIP) coverage, which will pay for their own medical expenses, regardless of fault for the accident.
However, if a car accident causes significant injuries, an injured victim can sue the at-fault driver outside of the no-fault system. In this scenario, the defendant’s liability insurance coverage can pay to compensate the accident victim.
Does Liability Stay With the Driver or the Car?
Car insurance is not attached to the driver or policyholder. Instead, it is attached to the motor vehicle listed on the policy. Therefore, if someone borrows a car with the vehicle owner’s permission, the owner’s car insurance policy will typically still pay to cover damages caused by an accident.
If you let someone borrow your car and that person crashes it, your insurance provider should cover the losses up to the limits on your policy. The driver may also have their own PIP insurance to provide coverage. If someone driving a borrowed car crashes into you, the owner of the other car can be held liable for your bills and losses through their insurance.
Liability Issues With a Borrowed Car
There are exceptions to the rule that could cause challenges during an insurance claim involving a borrowed car. These situations could create personal liability for the owner of the vehicle, even if he or she was not the one driving. This is why it’s important to be careful when it comes to lending your car to someone else.
Common situations where an insurance company will deny coverage for an accident involving a borrowed car are:
- The driver borrowed the car without the owner’s permission or knowledge.
- The driver of the car was under the influence of drugs or alcohol at the time of the crash.
- The driver had a history of reckless driving or causing accidents.
- The driver was someone the policyholder explicitly asked the insurer not to insure.
In these scenarios, the insurance company may reject coverage, leaving the owner of the vehicle with personal liability for medical bills and property repairs – even if the owner wasn’t directly involved in the crash.
When to Contact a New Jersey Car Accident Attorney
If you were involved in an accident where a car was borrowed, whether you were one of the drivers or the owner of the borrowed vehicle, it can benefit you to consult with a personal injury attorney in New Jersey about your legal options. An attorney can protect your rights and interests during insurance communications to help you achieve a positive case outcome. Contact The Law Offices of Jeffrey S. Hasson, P.C. today for a free case review.