If the person that you lent your car to causes a serious car accident that causes bodily injury to someone else, the liability policy of the owner of the car will have to step in to settle the claim first as long as the driver was a permissive user. When a liability claim for bodily injury becomes at issue, the coverage still follows the car as long as you gave that person permission to drive.
That is why it is a big deal to lend out your car. Bodily injury claims can be very expensive and if your policy limits cannot cover the damages, you may be on the hook personally. A driver is required to have a current car insurance policy in the state of Utah before they get behind the wheel of a car. In Utah, drivers are required to have Personal Injury Protection added to their policy. This policy pays the first $3,000.00 in medical bills for the driver no matter who is at fault. That part of the policy also follows the vehicle because the policy was written for a certain vehicle. That means that if your friend was hurt while crashing the car that you lent him. Your insurance will be the first to step up to pay his medical bills.
Keep in mind, that both parties’ insurance premiums will likely go up if claims are filed. Your insurance will not let you off the hook just because you were not driving. They will still consider you more of a risk than you were before because they now believe that you lend your vehicle to drivers who get into accidents. Sometimes lending out your car is a must, but avoid it when possible. If determining fault is an issue in your car crash, set up a free consultation with the best injury attorney you can find.
This article is offered only for general information and educational purposes. It is not offered as and does not constitute legal advice or legal opinion. You should not act or rely on any information contained in this article without first seeking the advice of an attorney.
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