Have you ever loaned someone your car? Considering the possible legal consequences of a car accident, it might not be such a good idea. As an automobile owner, you can bear liability for the misconduct of someone you allow to drive your car.
Liability
The following legal doctrines will determine who is liable for an accident caused by someone to whom you loaned your car.
The Dangerous Instrumentality Doctrine
Florida’s dangerous instrumentality doctrine applies if you loan someone your car. If the driver caused an accident that injured a third party, that third party can sue you for up to the following amounts for personal injury:
- $100,000 per person
- $300,000 per accident
- $500,000 if the driver acted with gross negligence.
You can bear liability even if you had no reason to believe that the driver to whom you loaned your car was incompetent.
Exclusions from liability
You can evade liability under the dangerous instrumentality doctrine if:
- The driver did not have your permission to drive the car;
- Your car was stolen; or
- Your insurance policy lists the driver as an excluded driver.
You can also evade liability for property damage under these circumstances.
Negligent Entrustment
If you loan your car to someone you have reason to know is an incompetent driver and they cause an accident, you can be held liable for negligent entrustment. Unlike the dangerous instrumentality doctrine, the injured party will have to prove that your entrustment was negligent.
The advantage of relying on the principle of negligent entrustment rather than the dangerous instrumentality doctrine is that the damages caps listed above do not apply. This strategy might work for someone suffering from a catastrophic injury.
Punitive damages
If your entrustment of your car to an incompetent driver was irresponsible enough to constitute gross negligence, an injured party might qualify for punitive damages from you. Insurance companies normally do not cover punitive damages, which means you might have to pay them out of your own pocket.
Dram Shop Liability
If you provide alcohol to someone under 21 or to someone you know to be a habitual abuser of alcohol, you can bear personal injury liability if you loan them your car and their intoxication causes an accident.
Insurance Coverage That Can Help You
In most but not all cases, insurance will pay a claim against you or the driver to whom you loaned your car.
PIP Insurance
Florida is a no-fault auto insurance state for personal injury. If you suffer a car accident injury, your personal injury protection (PIP) insurance will pay your medical expenses up to $10,000, no matter whose fault the accident was. If you loan your car to someone and they suffer an injury, they must look to their own PIP insurance first.
Your PIP will cover them only if their name appears on your PIP policy or if they are a member of your household. A third party must rely on their own PIP insurance up to $10,000.
Bodily Injury Liability Insurance
Because of Florida’s no-fault system, an injured car accident victim cannot sue the at-fault driver unless their injuries were ‘serious’ as defined by Florida law (or if another exception to the no-fault rules applies).
If the third party’s injuries were serious, they can file a claim against the at-fault driver’s bodily injury liability (BIL) insurance policy, if they have any. Shockingly, however, Florida does not require most drivers to purchase BIL.
If that is not enough, or if the at-fault driver doesn’t carry BIL, the injured party can file a claim against your BIL insurance. If you don’t carry BIL, or if your BIL coverage is insufficient, the injured party can sue you personally for their injuries.
PDL Insurance
Florida property damage auto liability insurance (PDL) is fault-based. If you loan your car to someone who causes property damage to the other driver, the other driver can file a claim against the at-fault driver’s PDL insurance. If that is not enough, they can file a claim against your PDL insurance. If that is still not enough, the property damage victim can sue you personally.
Talk to a Florida Car Accident Attorney
If you suffered a car accident injury in Miami, contact an attorney for a free initial consultation. You don’t need any money because attorneys in this area of the law don’t charge anything up front. All you need is a strong case. Under this contingency fee system, your lawyer will charge nothing in attorney’s fees unless they win compensation for you.
Contact the Chicago Car Accident Law Firm of Zayed Law Offices Personal Injury Attorneys for Help Today
For more information, please contact the experienced Chicago personal injury lawyers at Zayed Law Offices Personal Injury Attorneys today. We offer free consultations.
We proudly serve Cook County, Will County, Kendall County, and its surrounding areas:
Zayed Law Offices Personal Injury Attorneys – Chicago Office
10 S La Salle St STE 1230, Chicago, IL 60603
Phone:(312) 726-1616
Hours: Open 24/7
Our firm is located near you. We have an office in Chicago
Find us with our GeoCoordinates: 41.8815493,-87.6327515
Zayed Law Offices Personal Injury Attorneys – Joliet Office
195 Springfield Ave, Joliet, IL 60435
Phone: (815) 726-1616
Our firm is located near you. We have an office in Joliet
Find us with our GeoCoordinates: 41.5254295,-88.1381011
