What Should You Do if You Are Hit While Driving Someone Else’s Car in New York?

Car accidents are stressful, unexpected, and often expensive. When you’re driving your own car, the process is more straightforward—your insurance policy usually dictates how damages are covered. But what happens if you crash a car you don’t own?

Many people borrow vehicles from family members or friends without considering the financial and legal implications of an accident. If a crash occurs, does the car owner’s insurance cover the damages? What if the borrower has their own insurance? Who is financially responsible?

If you’re in this situation, you need clear and accurate information. This guide will cover everything about borrowed car accidents in New York, including insurance coverage, liability, legal consequences, and the steps to take after an accident.

Who is Liable for a Car Accident in a Borrowed Car?

New York’s No-Fault Insurance System

New York operates under a no-fault insurance system, meaning that each driver’s own insurance covers their medical expenses regardless of fault. However, this rule does not apply to property damage or liability claims. Determining liability for these expenses is essential.

Determining Who is Responsible

Liability in a borrowed car accident depends on multiple factors:

1. Who was at fault for the accident?
   If the borrower caused the accident, the car owner’s insurance usually pays first. If another driver was at fault, their insurance should cover the damages. If fault is shared, New York’s comparative negligence laws apply, meaning both parties may share financial responsibility.
2. Did the car owner give permission?
   If the borrower had permission to use the car, the car owner’s insurance is typically primary coverage. If the borrower took the car without consent, the owner’s insurance may deny the claim, leaving the borrower responsible.
3. Does the borrower have personal auto insurance?
   If the borrower has an auto insurance policy, it may act as secondary coverage. If the borrower has no insurance, they might have to pay out of pocket for damages.

 

Does the Car Owner’s Insurance Cover an Accident?

Primary vs. Secondary Coverage
In most cases, the car owner’s insurance is the primary coverage for an accident involving a borrowed vehicle. This means that the car owner’s insurance will typically cover damages and liability costs first.

When the Car Owner’s Insurance Pays
The car owner’s insurance will pay for damages if:

1. The borrower had explicit permission to drive.
2. The car owner’s policy includes liability and collision coverage for non-listed drivers.
3. The borrower does not have personal insurance.
4. The car owner’s policy meets New York’s minimum liability requirements.

When the Car Owner’s Insurance Might NOT Pay
The car owner’s insurance may deny the claim if:

1. The borrower did not have permission to drive.
2. The policy has driver exclusions for non-listed drivers.
3. The damages exceed the policy limits, leaving additional costs for the borrower to cover.
4. The vehicle was being used for commercial purposes, such as ridesharing.

Car owners should always review their insurance policies before lending their vehicle to ensure coverage for borrowed drivers.

 

Does the Borrower’s Insurance Cover an Accident?

What is Non-Owner Car Insurance?
If the borrower has personal auto insurance, their policy may provide secondary coverage in an accident.

Drivers who frequently borrow cars but do not own one can purchase non-owner car insurance. This type of policy provides liability coverage for accidents that occur while driving a borrowed vehicle.

When the Borrower’s Insurance Pays
The borrower’s insurance may provide coverage if:

• The borrower has non-owner car insurance.
• The car owner’s insurance does not fully cover the damages.
• The car owner’s insurance denies the claim.

If the borrower has no personal insurance, they could be fully responsible for damages.

 

What Happens if the Borrower is Uninsured?

Financial Consequences of Driving Without Insurance
If the borrower does not have auto insurance and the car owner’s policy does not cover them, they could be personally liable for damages.

Legal Penalties for Driving Without Insurance in New York

• The borrower may be responsible for all damages and medical expenses.
• The car owner’s insurance rates may increase.
• If the borrower causes serious injuries, they could be sued for compensation.
• Driving an uninsured vehicle in New York may result in license suspensions, fines, and even vehicle impoundment.

New York law requires all vehicles to be insured. If you frequently borrow vehicles, you should consider non-owner car insurance to protect yourself.

 

Steps to Take After an Accident in a Borrowed Car in New York

1. Ensure Safety & Call 911
   If there are injuries, fatalities, or significant property damage, New York law requires you to call 911 immediately. If possible, move the vehicle to a safe location while waiting for emergency responders.
2. Exchange Information
   Gather details from all drivers involved, including:
   • Names and contact information
   • Driver’s license numbers
   • Insurance details
   • Vehicle registration information
3. Document the Scene
   Take clear photographs and videos of:
   • The accident scene
   • Vehicle damages
   • Road conditions
   • Traffic signals and signs
4. Notify the Car Owner
   If you borrowed the vehicle, inform the owner immediately. The car owner may need to contact their insurance provider to start the claim process.
5. Contact the Insurance Company
   The car owner and borrower should both notify their insurance providers about the accident. Provide detailed and accurate information to avoid claim delays.
6. File a Police Report
   If property damage exceeds $1,000 or there are injuries, New York law requires a police report. You must also submit an MV-104 Accident Report to the New York DMV within 10 days.

 

Frequently Asked Questions (FAQ)

Who pays for damages if I crash a borrowed car in New York?
In most cases, the car owner’s insurance will be the primary coverage for damages. If the owner’s insurance policy includes liability and collision coverage, it will typically cover repairs and liability costs. However, if damages exceed the policy limits or if the car owner’s insurance denies the claim, the borrower may be responsible for covering the remaining costs.

Does my insurance cover me if I crash a car I don’t own?
Your personal auto insurance policy may provide coverage if it includes permissive use or non-owner car insurance. If you have non-owner insurance, it generally covers liability for damages caused while driving a borrowed vehicle. If your standard auto insurance policy does not extend to non-owned cars, you may have to pay out of pocket.

What happens if I get hit while driving someone else’s car?
If another driver is at fault for the accident, their insurance should cover the damages to the borrowed car. If the at-fault driver is uninsured or underinsured, the car owner’s uninsured motorist coverage may help cover repair costs. It is essential to report the accident to both the car owner and the insurance providers as soon as possible.

Can I be sued if I cause an accident while driving someone else’s car?
Yes, if you are responsible for an accident while driving a borrowed vehicle, you could be sued for damages. The car owner’s insurance will likely be used first to cover liability, but if the damages exceed policy limits, the injured party may file a lawsuit against you personally to recover additional compensation.

What if I borrow a car without permission and crash it?
If you drive someone’s car without their permission and cause an accident, the car owner’s insurance may deny the claim, leaving you financially responsible. Additionally, if the owner files a police report for unauthorized use, you could face criminal charges for driving the vehicle without consent.

 

Contact Marvin A. Cooper, P.C. Today

Borrowing a car can seem like a simple favor, but accidents can create complicated legal and financial issues. If you have been involved in an accident while driving a borrowed car in New York, contact us today to schedule a free consultation. Our car accident attorneys can help determine liability, navigate insurance claims, and ensure your rights are protected.