Owner Liability in California: What Happens If You Crash a Borrowed Car?

Borrowing a car might seem like no big deal, but if you end up in an accident, things can get complicated fast. Suddenly, you're dealing with damage, injuries, and a big question: whose insurance is responsible in a car accident? That's probably one of the first things that would cross your mind, right?

Well, the answer isn't always straightforward. In California, it mostly comes down to whether you had permission to drive the car and what kind of insurance coverage is available. But here's where it gets complicated: if you don't have your own insurance, that could cause some additional challenges. Below, we break down what you need to know about owner liability and how insurance works when someone else's car is involved in a crash.

Who Is Responsible For a Car Accident, the Driver or the Owner?

If you're involved in a crash while driving a vehicle owned by someone else with their permission, California law typically places primary liability on the car owner's insurance policy, up to the policy limits.

But what happens if the damage exceeds those limits? This is where the driver's own insurance may come into play. If the driver has their own auto insurance, it may act as secondary coverage. However, if the driver doesn't own a car and has no insurance, the injured parties may be left seeking compensation through other legal avenues, including a potential personal injury lawsuit against the driver directly.

Things look much different if the driver did not have permission to use the car. In this case, the owner of the vehicle is typically not liable for the accident. That means the driver could be fully responsible for the accident, including all damages and injuries caused. If the driver lacks insurance, they may be held personally liable and exposed to serious financial consequences.

Special Circumstances: Is The Owner of a Car Liable?

Car accident laws in California can get confusing, especially when someone other than the car's owner is involved. To break it down, let's use a real-life example. You drive a Range Rover and gave your teenage son your old Toyota Camry. To save on insurance premiums, you specifically excluded him from your auto insurance policy (which covers the Range Rover). Instead, he has his own insurance policy tied to the Camry.

Now, let's say he borrows your Range Rover one day and gets into an accident. Because he's a named excluded driver, your insurance won't cover any part of the crash. If his own coverage doesn't apply or the damages exceed his policy limits, then under California law, you, as the vehicle owner, could still be held personally liable, especially if someone files a lawsuit for injuries or property damage.

As you can see, there's no one-size-fits-all answer when it comes to these types of cases. But one thing is consistent: the financial burden can be overwhelming. With the high costs of car accidents in CA, it's smart to speak with an attorney if you are involved in a crash while driving a vehicle owned by someone else or if someone else crashed your car. We're here to protect your rights—whether you're the driver, the owner, or both.

Need a Personal Injury Lawyer in North Hollywood or Northridge?

If you've been involved in a crash while driving a vehicle owned by someone else—or if someone else crashed your car—it's important to understand how owner liability works in California. Determining whose insurance is responsible in a car accident can be tricky, especially when damages exceed policy limits or permission is in question. At Yepremyan Law Firm, our experienced personal injury attorneys can help you explore your legal options and guide you toward the best course of action.

As an established personal injury law firm in North Hollywood, we've proudly served clients across Southern California since 1998. If you need to speak with a car accident lawyer in North Hollywood or a Northridge personal injury lawyer, call our firm to schedule your appointment today. With 24/7 support, we offer free case evaluations for injured victims who need immediate assistance.

Yepremyan Law works on a contingency basis for all personal injury matters. No recovery, no fee.

*No Legal Advice Intended. This website includes general information about legal issues and developments in the law. These materials have been prepared for general informational purposes only and are not intended to be legal advice. Please consult an attorney for legal advice pertaining to any particular legal matter. Use of and access to this website or any of the links or resources contained within the site do not create an attorney-client relationship between the reader, user, or browser and Yepremyan Law Firm and any of its attorneys, employees, or associates.