What to do if I lended my car to someone and they were in an accident?

UPDATED: Jul 10, 2013

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What to do if I lended my car to someone and they were in an accident?

I paid my insurance payment late so now my insurance won’t cover damages. the other insurance company is now wanting me to pay damages and says I will lose my license if I don’t. I don’t know what to do? Am I responsible for all damages or do I have any options?

Asked on July 10, 2013 under Accident Law, Wisconsin


S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

As the registered owner of the vehicle, you are liable for the property damage and personal injury claims of the party who was not at fault in the accident.

You can sue the driver of your car for negligence to recover the amount of damages for which you are liable.

If you can't afford to pay the damages, you might want to consider filing bankruptcy.  Depending on your income, you may be eligible to file Chapter 7 bankruptcy which is straight liquidation which eliminates certain types of debts.  If you are not eligible for Chapter 7, you can file Chapter 13; however, Chapter 13 requires a plan (budget) for repayment of creditors.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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