There are more than 1 million registered automobiles in Iowa, a state with just over three million people. Some of the people out on the road are driving a borrowed vehicle. Maybe their own car is in the shop, and they need to get to work, or they can’t afford car payments but still need to get to a medical appointment. Whatever the reason, they ask a friend or family member if they can borrow their car.
What happens when a driver in a borrowed vehicle causes a crash? At Ball, Kirk & Holm, P.C., we excel at winning all types of car accident cases, including those involving drivers in borrowed vehicles. Contact us to speak with a Waterloo car accident lawyer. We can travel anywhere in the state to meet with clients, if circumstances warrant, and we provide an overview of the law regarding borrowed vehicles in this article.
What to Do After an Accident
You might not immediately know someone is driving a borrowed vehicle, unless they volunteer that fact. However, you should always ask to see the following after an accident:
- Driver’s license
- Car registration
- Insurance card
You will probably realize right off that the name on the registration is different from the driver’s license. You can ask them if they are driving a borrowed vehicle. Also ask for the owner’s name, if that is not apparent from the registration.
Remember to tell your lawyer the driver was in a borrowed vehicle. Your attorney might need to follow up with the owner to get full details about their insurance coverage, which might cover the accident.
Analyzing and Assigning Fault
In many ways, an accident involving a borrowed car is no different from any other collision. The overriding question is fault. We want to know who caused the accident, because they are typically liable for paying compensation to victims.
For example, you might have been rear-ended by someone driving a borrowed SUV. Often, the driver in the rear is liable because they were distracted or speeding, or they otherwise were following too closely. They are liable for failing to drive with sufficient care, so the person who is rear-ended can usually seek compensation.
This analysis doesn’t change simply because one driver is in a borrowed vehicle. Instead, the focus is on each driver’s actions in the lead up to the crash.
Insurance Issues with Accidents Involving Borrowed Vehicles
What insurance applies in these accidents? Suppose the driver of the borrowed vehicle is at fault. Do they pay out of their personal insurance, or the insurance of the driver who owns the vehicle?
In Iowa, the general rule is that the owner’s insurance is primary coverage if they gave permission to borrow the car. Common situations involve a person borrowing their neighbor’s or sibling’s vehicle. The driver might also have car insurance, in which case their insurance is secondary coverage.
However, if the at-fault driver stole the vehicle or otherwise did not have permission, we might turn to the driver’s insurance first. The car owner is probably not on the hook.
Here is how to analyze insurance:
- Are you at fault? If so, then stop. You can’t submit a claim on anyone’s liability coverage as you are solely to blame for the crash. In fact, you might need to pay compensation to anyone injured in the crash, such as another driver.
- Was the other driver at fault? If so, check if they had permission to drive the borrowed vehicle. If so, then the car owner will probably cover the settlement. Their insurance is primary.
- Did the driver steal the car? If the driver did not have permission to borrow a vehicle, then their own insurance is primary.
Confused? It’s okay if you do not know whose insurance is primary or secondary. That’s why you should hire a lawyer. We can untangle insurance issues while injured victims focus on healing. And we will help collect evidence to show who is at fault.
Our Waterloo Car Accident Lawyer Can Help Submit Claims
Hiring the right car accident lawyer provides an immediate lift to any case. The right legal team can comprehensively search for all evidence while reviewing issues like liability. Lawyers should also request information on all possible insurance policies that apply.
In certain cases, you might even need to bring a claim on your uninsured motorist policy (UM), especially if both the car owner and the negligent driver are without coverage. Fault still matters with claims filed under UM coverage, however, so a lawyer’s help is beneficial.
Bringing a Personal Injury Lawsuit
In certain situations, injured victims might personally sue either the driver or the car owner.
- Suing the driver. Regardless of whether someone has insurance, a negligent driver is always liable personally to injured victims. That means you might sue them in court for financial compensation. There are risks; for example, the driver might not have any money apart from the insurance policy. Nonetheless, we always investigate whether this is a realistic option.
- Suing the car’s owner. Although the owner was not driving, they can be liable for damages caused under Iowa Code § 321.493. This law states the owner is liable for damages when a negligent driver has consent of the owner to drive the vehicle.
Ball, Kirk & Holm, P.C. remains open to using all avenues to obtain fair compensation for our clients. When negotiation hits a wall, we aren’t afraid to turn to the courts. We believe in maximizing compensation for people struggling with medical bills and other economic losses.
Schedule Your Free Consultation with Our Firm
Car accidents cause headaches, and attempting to might an insurance claim takes time and energy. Secure professional legal help by calling our office to speak with a Waterloo car accident lawyer about what happened. Our firm can follow up with the driver and car owner for more information. We are available 24/7 for our clients and are eager to hear from you.