What Happens If Someone Borrows Your Car and Gets Into an Accident in Texas

If someone borrows your car in Texas, financial responsibility depends on their relationship with you, whether they had permission to borrow your car, and the purpose of their use.

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Alani Asis
Written byAlani Asis
Alani Asis
Alani Asis
  • 3 years of content writing

  • Bylines with leading financial publications

Alani is a freelance writer specializing in personal finance. She aims to make complex topics more approachable through fun, digestible content.

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Sara Getman
Edited bySara Getman
Sara Getman
Sara GetmanAssociate Editor

Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.

Outside of work, Sara is an avid reader, and loves rock climbing, yoga and crocheting.

Updated August 28, 2024

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If someone borrows your car and gets into an accident in Texas, whether your car insurance company provides coverage depends on several factors. Generally, insurance follows the car, not the driver, in Texas. So, if the person who borrows your car is a family member or someone you permit to borrow it, your insurance may provide liability coverage.

Read on to understand how insurance works, your legal responsibilities, and if you need to involve an attorney.

What happens if the person driving your car causes the accident

In Texas, if the person driving your car causes an accident, your liability insurance covers the property damages and injuries of the other driver up to your policy limit. It doesn’t cover the damages to your vehicle. You need collision insurance to cover vehicle repairs and replacements after an at-fault accident, which a full-coverage insurance policy includes.

If the driver is a family member

Texas follows the family purpose doctrine, which holds the registered vehicle owner responsible if a family member causes damages or injuries, even if they didn’t get permission to use your car.[1] 

Your insurance company may pay insurance claims for vehicle repairs when the driver is a family member, such as a licensed spouse or child. It’s a good idea to review your policy for specifics, as it may exclude coverage for unlisted household members on your policy.

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If you gave the driver permission to borrow your car

Insurance companies investigate permissive use to determine liability after an accident. Allowing someone to use your vehicle means you accept financial responsibility for any damages or injuries they cause.[2]

Car owners can provide valid consent verbally or in written form, such as text or email. You can also provide consent implicitly. For example, insurers may argue that you gave implicit consent if you give your partner a spare key and allow continued access to your car. Again, your policy may have limitations regarding permissive use, so it’s best to speak to your insurer for clarification on how it applies.

If you didn’t give the driver permission to borrow your car

A driver (other than a family member) is responsible if they use your car without permission and cause an accident. Their liability coverage should kick in to cover the damage they cause, including vehicle repairs and medical bills. Your uninsured/underinsured motorist coverage would kick in if the driver is uninsured. But if your policy limits aren’t enough to cover the cost, the driver must pay for liability expenses themselves.

Good to Know

Whether or not someone operated your vehicle without consent, determining who should pay after an accident can get complicated. It’s best to consult a personal injury attorney if you have questions about liability.

If the borrower used your car for business purposes

Personal auto insurance policies exclude coverage for business use. The driver can only use their own commercial auto policy if an accident occurs while using the car for business purposes. For example, if a friend uses your car to drive for a rideshare company, like Uber or Lyft, and gets into a collision, your insurer probably won’t cover it.

What happens if the other driver is at fault

Texas is an “at-fault” state or “tort” state, meaning that the at-fault driver is financially responsible for damages and injuries they cause. This means Texas drivers must carry the minimum liability coverage amount that the state requires.

If the at-fault driver doesn’t have insurance, you may have to shoulder costly vehicle repairs and medical expenses. Uninsured/underinsured motorist coverage protects you in this case. It kicks in when a driver with no insurance causes an accident or pays for coverage gaps if the at-fault party has low insurance limits.

Texas law recommends uninsured/underinsured motorist coverage but doesn’t require it. So, you need to opt in to include it on your auto policy.[3]

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Why your insurance company might deny a claim when someone else is driving your car

Insurance companies won’t cover all incidents someone else causes when driving your car. For example, insurers may deny coverage for non-family members using your car without permission.

Other specific situations that may lead to claim denials include:

  • illustration card https://a.storyblok.com/f/162273/100x100/c323e327d0/expired-lisence.svg

    Unlicensed driver

    It’s illegal to drive a car without a valid license. Insurers don’t cover accidents caused by unlicensed drivers.

  • illustration card https://a.storyblok.com/f/162273/150x150/208875ecd9/car-and-driving-96x96-orange_041-steering-wheel.svg

    Negligent entrustment

    Your insurer may reject your claim if you knowingly allow an inexperienced or dangerous driver to operate a vehicle.[4]

  • illustration card https://a.storyblok.com/f/162273/150x150/0813fbcbf2/car-and-driving-96x96-blue_022-no-alcohol.svg

    Named driver exclusion

    Your policy may explicitly exclude a named driver from coverage. Insurers may do so for someone with a bad driving record, including DUIs or other moving violations.[5]

Accident when someone else drives your car FAQs

If you’re still unsure about insurance coverage for driving a borrowed car in Texas, this additional information may help.

  • Can you sue a friend for crashing your car?

    You can sue a friend for crashing your car, but legal action may not be worth it, especially if the accident only results in damage and no injuries. If you permit them to use your car, your insurance company may pay for the injured party’s damages or bodily injuries. If you have full coverage, your collision insurance may also cover your vehicle damages.

    Be aware that an accident and using your coverage may increase your insurance premiums at renewal.

  • Who’s liable in a car accident in Texas, the owner or the driver?

    The liable party in a car accident in Texas depends on the circumstances. You’re liable if the driver is a family member or if you permitted them to use the car. The driver is responsible if you didn’t permit them to use your car.

  • Does insurance follow the car or the driver in Texas?

    In Texas, insurance typically follows the car. Your auto insurance covers liability expenses if the at-fault driver is a family member or has permission from the vehicle’s registered owner. If the driver didn’t get your permission, their car insurance policy may cover liability costs.

  • Can you just get into anyone’s car and drive it in Texas?

    No, you can’t just drive anyone’s car. Besides legality and common courtesy, you’ll have to pay for any damages and injuries you cause if you crash someone else’s car without permission. Your insurer may or may not cover you in this instance.

Sources

  1. Cornell Law School. "family purpose doctrine."
  2. Nolo. "Who is Covered by Permissive Use Car Insurance?."
  3. Texas.gov. "Auto insurance guide."
  4. FindLaw. "Vicarious Liability and Negligent Entrustment."
  5. Justia Law. "2023 Texas Statutes Insurance Code."
Alani Asis
Alani Asis

Alani Asis is a personal finance freelance writer with nearly three years of experience in content creation. She has landed bylines with leading publications and brands like Insider, Fortune, LendingTree, and more. Alani aims to make personal finance approachable through fun, relatable, and digestible content.

Sara Getman
Edited bySara GetmanAssociate Editor
Sara Getman
Sara GetmanAssociate Editor

Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.

Outside of work, Sara is an avid reader, and loves rock climbing, yoga and crocheting.

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