Owner’s Liability of a Permissive Use Driver
Determining liability can be challenging when a motor vehicle accident occurs. In addition, various legal questions arise when the driver who caused the collision is not the owner of the vehicle. Understanding how liability works in these situations can be important for both vehicle owners and drivers who may have been injured in the accident.
What Is a Permissive Use Driver?
A permissive use driver is an individual who operates a vehicle after obtaining permission from the vehicle’s owner. The following are various examples of permissive use.
- Lending a vehicle to a friend for a short trip
- Allowing a family member to borrow a car for errands
- Letting a coworker drive a vehicle temporarily
- Permitting another person to drive during a long trip
Owner Liability Under Permissive Use Laws
Under Vehicle Code §17150, it states that a vehicle owner may be held accountable for any injuries or property damage that has occurred from a negligent act committed by another individual operating the vehicle with the owner’s permission. This is oftentimes referred to as vicarious liability, meaning that one party may be held accountable for the actions of another individual. Vicarious liability can be applied to vehicle collisions when the following occurs.
- The driver who caused the accident may be liable for negligent driving.
- The vehicle owner may also share liability because they allowed the driver to use the vehicle.
Insurance Coverage and Permissive Use
In many cases, auto insurance follows the vehicle rather than the driver. This means the insurance policy associated with the vehicle may be the first source of coverage when an accident occurs, even if someone else was driving.
When a permissive use driver causes an accident, the typical insurance order may include:
- The vehicle owner’s insurance policy, which generally serves as the primary coverage.
- The driver’s personal insurance policy, which may provide secondary coverage if damages exceed the owner’s policy limits.
However, the exact outcome may depend on policy terms, coverage limits, and the specific facts of the accident.
Statutory Limits on Owner Liability
Some jurisdictions place limits on how much financial responsibility a vehicle owner may have when another individual causes an accident while driving their car. Under California law, an owner’s liability in permissive use cases may be limited to certain amounts for injury and property damage. These statutory caps may include:
- Up to $15,000 for injury or death to one person
- Up to $30,000 for injury or death to multiple people
- Up to $5,000 for property damage
If damages exceed those amounts, the at-fault driver’s personal insurance policy may be responsible for additional coverage. These limits apply in many standard permissive use situations, although exceptions may exist depending on the circumstances of the case.
Situations That May Expand Owner Liability
In certain situations, the owner of a vehicle may face additional liability beyond the standard permissive use rules.
Negligent Entrustment
Negligent entrustment can occur when a vehicle owner knowingly allows an unsafe or unqualified driver to operate their vehicle. This may include, but is not limited to, the following.
- Allowing an individual with a suspended or revoked license to drive the vehicle
- Lending a vehicle to someone known to drive recklessly
- Allowing a person with a significant impairment to operate the vehicle
Unsafe Vehicle Conditions
If a vehicle owner knowingly lends a vehicle with serious mechanical defects, they may also face liability.
Employment Situations
Individuals may also be held liable when the driver is operating a vehicle as part of their employment. Under certain circumstances, employers may be responsible for accidents that occur while employees are performing work duties.
When Owners May Not Be Liable
There are also cases in which a vehicle owner may not be responsible for damages caused by another driver. These instances are important to understand as they can hold the correct individual or party accountable. The following are examples of situations in which vehicle owners may not be held liable.
- Unauthorized use or theft
- Use outside the scope of permission
- Insurance policy exclusions
How Legal Guidance May Help
Understanding the legal steps needed to determine liability is crucial to ensuring that justice is served. Legal guidance may help individuals become aware of their rights to help them with the future of their case. A professional can explain the legal process in detail, allowing victims to understand the necessary steps to receive compensation.
How KAASS LAW Can Help
At KAASS LAW, we understand the challenges of understanding who is responsible for a vehicle collision, especially when it involves a permissive use driver. Speaking to an experienced personal injury attorney at KAASS LAW may help provide the support and guidance needed to proceed with the claims process. Our attorneys can help evaluate your case, speak to insurance providers, and assess the potentially liable parties. Call KAASS LAW today!