Hawk Law Group | July 25, 2024 | Car Accidents
You probably don’t need anyone to tell you to be careful about who you loan your car to. Naturally, you’re going to regret loaning your car to someone if a car accident results. So, will your insurance pay for the accident?
Typically, the answer is yes, at least if the accident was the fault of the driver you loaned your car to. However, there’s a lot more to the situation than meets the eye.
Georgia’s Mandatory Car Accident Insurance Coverage
Georgia requires its drivers to maintain at least the following amount of car accident insurance:
- $25,000 per person liability insurance for bodily injury or wrongful death;
- $50,000 per accident liability insurance for bodily injury or wrongful death; and
- $25,000 in property damage liability.
None of these amounts pay for your own bodily injury or death, or for your own property damages. Their purpose is to cover your liability to others if you cause an accident.
Voluntary Insurance That You Should Consider
Georgia mandatory insurance laws do not provide full protection. If you want full protection, consider purchasing the following types of optional car insurance:
- Collision insurance
- Uninsured/underinsured (UIM) motorist coverage
- MedPay coverage that includes you and anyone who drives your car with your permission
- Gap coverage: Gap coverage will protect you if you total your car and its remaining value is less than the amount you still owe the bank for it.
- Comprehensive coverage: Comprehensive policies include all of the above and more.
Check the terms of your policy to make sure that your policy pays out if you loan your car to someone else.
Does Your Car Insurance Cover Other Drivers?
Typically, yes. Car insurance covers the car, not the driver. Your liability coverage will pay for anyone your driver injures and any property damage they cause.
Be careful, however–some policies might only cover specified family members and exclude drivers who you do not include in your policy.
If You Don’t Carry Sufficient Insurance
Suppose you break the law by failing to carry minimum car insurance. You loan your car to Joe, who negligently wrecks it and injures the other driver. If you get lucky, the terms of Joe’s insurance policy might cover the accident.
If you’re not so lucky, the terms of Joe’s policy will forbid this, or Joe doesn’t carry car insurance at all. You could bear personal liability for the damage Joe caused. Either way, you’re likely to face trouble for failing to carry minimum insurance.
Potential Policy Loopholes
Depending on the terms of your car insurance policy, it might not pay out if the driver:
- Was explicitly excluded from your insurance policy;
- Was not explicitly named on your insurance policy;
- Did not have a valid driver’s license;
- Was under the influence of alcohol or drugs;
- Used your car for a commercial activity; or
- Stole your car
If the insurance policy refuses to pay, and if the driver’s insurance refuses to pay, you might bear liability for both damage to your own car as well as injuries and property damage to the victims of the at-fault driver’s negligence.
On the bright side, comprehensive insurance might cover damage to your car if someone stole it and got into an accident. In case of theft, you will not bear liability to any third party.
If the Accident Was the Other Driver’s Fault
If the accident wasn’t the fault of the person you loaned your car to, you can file a third-party claim against the at-fault driver’s liability insurance policy. If they are uninsured or insufficiently insured, you can rely on uninsured/underinsured motorist coverage, if you have any.
In other words, you can handle the situation just as if it were you driving the car at the time of the accident, except that any medical payments will go to the person you loaned your car to, not you.
Do You Need a Car Accident Lawyer?
Car accident cases are frequently uncertain. One thing you can be sure of, however, is that any insurance company will pay out as little as they can get away with. Since insurance adjusters are professional negotiators, this can put you at a huge disadvantage if you are representing yourself.
An experienced personal injury lawyer can make all the difference in your claim. And under the contingency fee system that most personal injury lawyers use, you don’t pay attorney’s fees unless you win.
Contact the Car Accident Lawyers In the Central Savannah River Area at Hawk Law Group for Legal Assistance Today
For more information, please contact the car accident lawyers at Hawk Law Group at our nearest location to schedule a free consultation today.
We serve throughout the Central Savannah River Area and its surrounding areas:
Hawk Law Group – Augusta, GA
338 Telfair St, Augusta, GA 30901, United States
(706) 722 3500
Hawk Law Group – Evans, GA
4384 River Watch Pkwy, Evans, GA 30809, United States
(706) 863 6500
Hawk Law Group – Thomson, GA
146 Railroad St A, Thomson, GA 30824, United States
(706) 361 0350
Hawk Law Group – Waynesboro, GA
827 Liberty St, Waynesboro, GA 30830, United States
(706) 437 9122
Hawk Law Group – Aiken County, SC
156 Laurens St NW, Aiken, SC 29801, United States
(803) 226 9089
We also serve in Edgefield County, SC.