By Eric A. Shore, Founding Attorney, Law Offices of Eric A. Shore

If you were hurt while driving someone else’s car in Pennsylvania, New Jersey, or Florida, the insurance that pays may include your own auto policy, the car owner’s policy, the at-fault driver’s policy, uninsured motorist coverage, underinsured motorist coverage, health insurance, or another available policy.

The biggest mistake is assuming there is only one insurance company involved. In many crashes, medical bills, car damage, lost wages, and pain and suffering are handled by different coverage.

Key Takeaways

If you had permission to drive the car, the car owner’s insurance may apply.

Your own auto insurance may also matter, especially for medical benefits, uninsured motorist coverage, or underinsured motorist coverage.

The at-fault driver’s liability insurance may pay for injuries and losses caused by the crash.

The insurance that pays for the car damage may not be the same insurance that pays your injury claim.

A borrowed car crash should be reviewed for every available policy, not just the first one that calls.

A Common Story We Hear

This is a common example based on situations I have seen many times. Details are changed, and this is not a specific client story.

A man borrowed his sister’s car because his own car was in the shop. On the way home from work, another driver ran a stop sign and hit him. At first, he thought the other driver’s insurance would handle everything.

Then his sister’s insurance company called. His own insurance company called. The other driver’s adjuster called. The body shop wanted to know who was paying for the car. The hospital wanted insurance information.

By the time he called my office, he said, “I was just borrowing the car. Why are there so many insurance companies involved?”

I have seen this happen many times. When you are driving someone else’s car, the claim can involve both the car and the person driving it. Those are not always covered the same way.

Whose Insurance Pays If I Was Driving Someone Else’s Car?

If you had permission to drive the car, the car owner’s insurance may apply first for some claims. Your own policy may also apply, and the at-fault driver’s insurance may pay if another driver caused the crash.

The answer depends on several facts: did you have permission to drive the car, who caused the crash, what state the crash happened in, whether you have your own auto insurance, whether someone in your household has auto insurance, whether the car was used for personal or work-related driving, and whether the other driver was uninsured or underinsured.

One mistake I see often is that injured drivers focus only on the car owner’s policy. That policy may matter, but it may not be the only one.

Does Insurance Follow the Car or the Driver?

Sometimes insurance follows the car, and sometimes benefits follow the injured person. Liability coverage often follows the car when the driver had permission, while medical

benefits, PIP, uninsured motorist coverage, or underinsured motorist coverage may depend on your own policy or household coverage.

This is why these cases feel confusing. For property damage to the borrowed car, the car owner’s collision coverage may matter. For injuries you suffered, your own auto policy may matter. For pain, suffering, and other damages caused by another driver, the at-fault

driver’s liability coverage may matter.

So when someone asks, “Whose insurance pays?” my answer is usually, “For which part of the claim?”

What If I Had Permission to Drive the Car?

If you had permission, the car owner’s insurance is much more likely to apply. Permission may be express, like someone handing you the keys, or implied, based on past use.

If your friend, spouse, parent, coworker, neighbor, or relative let you drive the car, the owner’s insurance may treat you as a permissive driver. That can help with liability coverage if you caused the crash, collision coverage for the vehicle if the owner purchased it, medical benefits in some situations, or other policy benefits depending on the state and policy.

But do not assume permission solves everything. Some policies have exclusions, restrictions, household rules, business use limits, or coverage limits that matter. In my experience, insurance companies sometimes question permission when the crash is serious, so save texts, call logs, or messages showing the owner let you use the car.

What If I Did Not Have Permission?

If you did not have permission to drive the car, coverage can become much harder. The owner’s insurance may deny coverage, and you may face serious legal and financial problems.

This is a very different situation. If the car was taken without permission, borrowed against the owner’s instructions, or used outside the allowed purpose, the insurance company may fight coverage.

Examples may include taking a roommate’s car without asking, driving after being told not to use the car, using the car for delivery or rideshare when that was not allowed, letting

another person drive when the owner only gave permission to you, or taking an employer’s vehicle for personal use without approval.

If there is a dispute about permission, get legal advice quickly. Do not guess in a recorded statement.

Who Pays My Medical Bills After the Crash?

Medical bills may be paid by PIP, first-party benefits, MedPay, health insurance, or another available medical coverage source. The at-fault driver’s liability insurance usually pays later through settlement, not bill by bill.

The first insurance company to call is not always the one that pays your medical bills. In some cases, your own policy may apply. In other cases, the car owner’s policy, a household policy, health insurance, or another coverage source may matter.

That is why it is important to identify every policy early.

Who Pays for the Damage to the Car I Was Driving?

Damage to the borrowed car is usually handled through the car owner’s collision coverage, the at-fault driver’s property damage liability coverage, or both. If you caused the crash and the owner did not have collision coverage, the owner may expect you to pay.

This part is separate from your injury claim. The car owner may be worried about repair bills, deductibles, rental car costs, total loss value, insurance rate increases, and loan or lease payoff issues.

I have found that injury claims can get emotionally messy when the borrowed car belongs to a friend or relative. Keep the car damage issue separate from your medical and injury claim whenever possible.

What If the Other Driver Caused the Crash?

If another driver caused the crash, that driver’s insurance may be responsible for your injury claim. You may still need your own policy or the car owner’s policy for medical bills first.

This is the most common misunderstanding. People think, “The other driver caused it, so their insurance pays everything now.” Often, that is not how it works.

The at-fault driver’s liability insurance may pay later for pain and suffering, lost wages, medical bills not paid by other coverage, future medical care, permanent injury, scarring, and loss of normal life. But your immediate medical bills may need to go through PIP, first-party benefits, MedPay, or health insurance first.

You can learn more about injury claims on our Personal Injury page.

What If I Caused the Crash?

If you caused the crash while driving someone else’s car with permission, the car owner’s liability insurance may protect you up to the policy limits. Your own auto policy may provide additional coverage depending on the policy.

This is where policy language matters. If you were a permissive driver, the owner’s policy may defend and protect you if someone else makes a claim. Your own policy may act as excess coverage in some cases.

But exclusions can create problems. Coverage may be disputed if you were driving for paid delivery, driving for rideshare, using a company vehicle outside work, excluded from the policy, driving without a valid license, impaired, or driving without permission.

Do not assume you are protected. Get the policies reviewed.

What If the Other Driver Had No Insurance?

If the other driver had no insurance, uninsured motorist coverage may help. If the other driver had some insurance but not enough, underinsured motorist coverage may help.

These are often called UM and UIM claims. Coverage may come from your own auto policy, a household family member’s auto policy, the car owner’s policy, or another available policy.

One pattern I see often is that injured drivers stop looking after they learn the other driver had little or no insurance. That can be a mistake. UM and UIM coverage may be the most important part of the case.

What If I Was Driving a Rental, Company Car, or Borrowed Work Vehicle?

Rental cars, company cars, delivery vehicles, and work vehicles can involve extra coverage questions. Business use, employer permission, rental agreements, and commercial insurance can all affect who pays.

Possible policies may include rental car coverage, credit card rental coverage, your

personal auto policy, employer commercial auto coverage, the vehicle owner’s policy, the at-fault driver’s policy, or UM and UIM coverage.

If you were driving for work, there may also be a workers’ compensation issue. If another driver caused the crash while you were working, you may have both a workers’ compensation claim and a personal injury claim against the other driver.

The Better Question After a Borrowed Car Crash

The better question is not, “Whose insurance pays?” The better question is, “What coverage exists for each part of the loss?”

A borrowed car crash may involve medical bills, car damage, wage loss, pain and suffering, disability benefits, job issues, and insurance disputes. Most people call about one insurance question, but in my experience, the real answer often requires looking at every policy.

What Should I Do After a Crash in Someone Else’s Car?

If you are hurt, get medical care right away. If police came to the scene, get the crash report number. If you had permission to drive the car, save any text or message showing permission.

Get the car owner’s insurance information, your own auto insurance information, and the other driver’s insurance information if another driver caused the crash. If an insurance company wants a recorded statement, ask which claim it relates to before answering.

If you are asked to sign a release or accept a quick settlement, talk to a lawyer first.

When Should I Call a Lawyer?

Call a lawyer if you were injured, missed work, multiple insurance companies are involved, permission is disputed, the other driver had no insurance, or the crash happened while you were driving for work.

You may not need a lawyer for a minor crash with no injury and clear insurance coverage. But the biggest mistake people make is letting the insurance companies define the case before all coverage is found.

Call sooner if you went to the emergency room or urgent care, need physical therapy, missed work, were driving a borrowed, rental, company, or work vehicle, the car owner is upset or blaming you, the insurance company says there is no coverage, the other driver had no insurance or low limits, you were offered a quick settlement, or you do not know which insurance company should pay.

If you were hurt while driving someone else’s car in Pennsylvania, New Jersey, or Florida, the Law Offices of Eric A. Shore can help you understand what insurance may apply. Call 1-800-CANT-WORK for a free consultation.

FAQ

Am I covered if I had permission to drive someone else’s car?

Usually, permission makes coverage more likely, but the policy still matters. The owner’s insurance, your insurance, and the at-fault driver’s insurance may all need review.

Does my insurance pay if my car was not involved?

Sometimes, yes. Your own auto policy may help with medical benefits, UM coverage, UIM coverage, or excess coverage depending on the state and policy.

Will the car owner’s insurance rates go up?

Maybe. That depends on the insurer, the policy, who caused the crash, and state rules. The injury claim and property damage claim may be handled separately.

What if I crashed a friend’s car and do not have insurance?

The friend’s policy may apply if you had permission, but coverage is not guaranteed. You should get advice before giving statements or agreeing to pay anything.

What if I was driving someone else’s car for work?

You may have more than one claim. Depending on the facts, there may be commercial auto coverage, workers’ compensation, and a personal injury claim against another at-fault driver.

About Eric A. Shore

Eric A. Shore is the founding attorney of the Law Offices of Eric A. Shore, with offices in Pennsylvania, New Jersey, and Florida. Since 1994, Eric and his team have helped tens of thousands of people who cannot work because of injury, illness, disability, or workplace issues. Clients of the firm have received or are expected to receive more than $250 million in judgments, settlements, and estimated lifetime benefits.

Eric is licensed in Pennsylvania, New Jersey, and Florida, and he administers one of the largest Social Security Disability groups on Facebook, with over 40,000 members. Through the firm’s DISINJURY™ approach, Eric looks at every case for overlapping claims, including personal injury, workers’ compensation, disability benefits, and employment law, so nothing a client may be entitled to gets left behind.

Have questions about your situation? Call 1-800-CANT-WORK or visit www.1800CantWork.com for a free consultation.

General information only. This article is not legal advice and does not create an attorney-client relationship.