This question seems to come up frequently. Generally, the scenario is that a person allowed someone else to drive their car. The driver gets into an accident where they are at fault and now the question is, who is liable for damages?

Both the driver and owner of the uninsured vehicle are responsible for damages to the other car(s). Under California law, a registered owner is liable for a permissive use of his/her vehicle, which means that their insurance policy can (and almost always do) allow them to give permission to someone else to drive their car.

Assuming that the owner of the car gave permission to the driver, the owner’s insurance will be the primary insurance the other party will be going after for damages.  However, under the California Vehicle Code, the owner is only liable for up to $5,000 in property damage and $15,000 for the death of or injuries to one person (and a $30,000 maximum for the death of or injury to more than one person).

Where a car owner lets another person drive a car, California will treat the car owner as sharing liability for any accident caused by the borrower.

In some cases, people may have a car titled and registered in their name, but allow someone else to drive it and insure into their own name. If the driver was to get into an accident, the owner’s insurance company will still be liable for $5,000 in property damages and up to 30,000 in personal injuries, whether or not the driver is insured. In the event that the owner does not have insurance, the driver’s insurance will be liable for damages and injuries.

Keep in mind, the at-fault driver and owner of the car will still be liable to pay for the property damages and medical bills wether or not the other party has insurance.

In other words, be careful who you lend your car to!