Lending your car to someone in Texas might seem like a simple favor, but if the driver gets into an accident, you could face legal and financial consequences. Texas follows a unique blend of liability laws that determine who is responsible for damages in such cases.
At Amanda Demanda Injury Lawyers, our seasoned Texas car accident attorneys can represent you strongly in an injury claim and explain to you the insurance coverage for accidents caused by others. Learn more about us and schedule your free consultation today.
Texas’s Car Insurance Liability Framework
Texas is an “at-fault” state, which means that the driver who causes the accident is financially responsible for any damages or injuries. However, insurance coverage follows the vehicle, not the driver. When you allow someone else to drive your car, your auto insurance policy is likely the first to be tapped for damages.
Your liability coverage will cover damages caused to other parties up to the policy limits, regardless of who was driving. If the damages exceed your policy limits, the driver’s insurance may serve as secondary coverage.
Minimum Insurance Requirements in Texas
Under Texas law, all vehicle owners must carry at least the following minimum liability insurance:
- $30,000 for bodily injury per person
- $60,000 for bodily injury per accident (if multiple people are injured)
- $25,000 for property damage
Insurance Coverage Hierarchy in Texas
When someone else drives your car and causes an accident, these insurance policies may come into play:
- Your Auto Insurance: Primary coverage, up to the policy limits
- Driver’s Insurance: Secondary coverage, if your policy limits are exhausted
- Uninsured/Underinsured Motorist Coverage: If the at-fault party is uninsured or has insufficient coverage, your UM/UIM policy may apply
Legal Doctrines Impacting Car Owner Liability in Texas
Negligent Entrustment
If you knowingly allow someone unfit to drive your car—such as someone who’s intoxicated, unlicensed, or reckless—you could be held liable for negligent entrustment. Under Texas law, plaintiffs in an accident may claim that you were negligent for entrusting your vehicle to an unsafe driver.
To prove negligent entrustment, the following must be established:
- You owned the vehicle
- You entrusted the vehicle to the driver
- The driver was unlicensed, incompetent, or reckless
- You knew or should have known of the driver’s condition
- The driver’s incompetence or recklessness caused the accident
Vicarious Liability
Texas also recognizes the doctrine of vicarious liability in specific personal injury claim scenarios. If the driver was using your vehicle to perform duties on your behalf (e.g., running errands for you), you could be held indirectly liable for their actions under the “respondeat superior” principle.
Exceeding Policy Limits
For letting someone drive your car accident, if the damages exceed your policy limits, you may be personally responsible for the remaining costs. This risk is particularly high in cases involving severe injuries or multiple vehicles. In such situations, plaintiffs may file a lawsuit to recover the excess damages.
Factors Determining Liability in a Texas Car Accident with Borrowed Vehicle
Was Permission Given?
Texas law differentiates between authorized and unauthorized use of your vehicle. If the driver had your explicit or implied permission, your insurance policy would likely cover the accident. However, if someone took your car without your consent (e.g., theft), you generally wouldn’t be held liable for damages.
Excluded Drivers
Some insurance policies list specific “excluded drivers.” If an excluded driver causes an accident in your car, your insurance company may deny coverage, leaving you and the driver personally liable for any damages.
Commercial vs. Personal Use
If the driver was using your car for commercial purposes, such as food delivery or ridesharing, your personal auto insurance may not cover the accident. Instead, the driver’s commercial policy or supplemental insurance provided by the employer may apply.
Legal Challenges for Vehicle Owners in Texas
Vehicle owners in Texas face unique challenges when their car is involved in an accident caused by another driver:
- Proving Consent: Disputes may arise over whether the driver had your permission to use the car.
- High Damages: Serious accidents could result in liability exceeding policy limits.
- Excluded Drivers: If an excluded driver was at the wheel, coverage might be denied entirely.
- Litigation Risks: You could face lawsuits if the injured parties believe you share liability.
Get Our Skilled Texas Car Accident Lawyers on Your Side
When it comes to fighting for the largest possible compensation you’re owed after a car accident, turn to Texas car accident attorney Amanda Demanda at Amanda Demanda Injury Lawyers.
With a formidable record of multi-million dollar settlements and verdicts, our award-winning lawyer Amanda Demanda is relentless in her pursuit of justice for her clients. To schedule your free consultation, call us 24/7 or contact us through our form.