Who Is Liable: Car Owner or Driver

• January 28, 2025

Car accidents are stressful and often life-changing events. If you've sustained injuries or lost a loved one because of a crash someone else caused, you're likely dealing with difficult questions about what happens next. One of the most significant issues to address is determining liability for the accident. Specifically, who is liable—the car owner or driver—for the damages and losses you've suffered? You must resolve this question to seek compensation. Consulting a qualified Detroit car accident lawyer in your area can help clarify your options during a free consultation.

Did a Borrowed Vehicle Cause Your Crash?

Imagine being hit by a car, only to discover that the driver doesn’t even own the vehicle. Perhaps it was borrowed from a friend or family member. This situation can make determining liability more complicated. Is the driver at fault, or does responsibility extend to the car's owner as well?

Different scenarios influence liability in accidents involving borrowed vehicles. Sometimes, the driver—as the person behind the wheel—is held accountable. Other times, the owner bears some or all responsibility, especially if they negligently allowed someone else to operate their car. The legal analysis of these situations requires a deeper look at the roles and responsibilities of both parties.

The General Rule: Driver Liability

In most car accidents, the driver is primarily responsible. Here’s why:

Primary Responsibility of the Driver

Drivers are expected to operate vehicles safely and follow traffic laws. When a driver’s negligence causes an accident, they are generally the one held liable. Negligent driving includes behaviors like speeding, running red lights, or texting while driving.

Insurance Coverage for Permitted Drivers

Most car insurance policies extend coverage to drivers who have permission to use the vehicle. If someone borrows a car with the owner’s consent and causes a crash, the driver’s actions usually determine liability, though the owner’s insurance may provide coverage.

Examples of Driver Liability Scenarios

• A driver runs a stop sign and collides with another vehicle.


• A distracted driver rear-ends someone at a traffic light.


• A motorist speeds in bad weather, losing control and causing a crash.

Owner Liability Scenarios

While the driver is usually liable, certain situations place responsibility on the car owner. These include negligent entrustment, vicarious liability, and other special circumstances.

Negligent Entrustment

Car owners have a duty to act responsibly when lending their vehicles. Negligent entrustment occurs when an owner knowingly allows someone unfit to drive to use their car.

Definition and Legal Requirements

Negligent entrustment means that the car owner knew or should have known that the driver posed a risk. Proving this requires showing that the owner had prior knowledge of the driver’s incompetence or recklessness.

Examples of Negligent Entrustment

• Lending a car to someone without a valid driver’s license.


• Allowing an intoxicated friend to borrow the vehicle.


• Giving a car to someone with a history of traffic violations or accidents.

Case Examples

Consider a case where a car owner knowingly lends their vehicle to a friend with a history of DUIs. If that friend causes a crash while intoxicated, the owner could share liability for any resulting damages. Likewise, a parent who lets their teenager drive despite knowing the teen has a history of speeding tickets could face liability if an accident occurs.

Vicarious Liability

Certain legal doctrines also hold car owners accountable for another person’s actions while driving their vehicle.

Family Purpose Doctrine

Some states apply the family purpose doctrine, which makes the head of a household liable when a family member uses a vehicle for family purposes and causes an accident.

Employer-Employee Relationships

If an employee causes an accident while driving a company vehicle or conducting work-related tasks, the employer may be held liable under the principle of vicarious liability.

State-Specific Statutes

Some states have laws making vehicle owners responsible for accidents caused by anyone driving their car, regardless of whether the driver had permission or was acting negligently. For instance, Michigan law states that a motor vehicle owner can be held responsible for injuries resulting from the negligent operation of their vehicle, whether the negligence involves violating state laws or failing to meet the common law standard of reasonable care. 

However, the owner’s liability applies only if the vehicle is being operated with their explicit or implied permission or awareness. If the vehicle is being driven at the time of the injury by a close family member—such as a spouse, parent, sibling, or child—it is generally assumed that the owner has given their consent or has knowledge of its use.

Insurance Implications

In these cases, the car owner’s insurance policy often becomes the primary source of compensation for injured parties.

Special Circumstances

In some situations, determining liability isn’t straightforward. Certain factors, such as permission, vehicle maintenance, or unusual circumstances, can complicate the question of whether the driver or owner bears responsibility. These special circumstances often require a closer look at the details of the crash and the relationships between the parties involved.

Permission and Scope

Liability often depends on whether the driver had the owner’s permission to use the vehicle and whether that permission was honored.

• Express vs. Implied Permission: When a car owner explicitly allows someone to borrow their vehicle, this is express permission. Implied permission is less direct and may arise from habitual use. For instance, if a parent regularly allows their child to use the car, courts may interpret this as implied consent, even without verbal confirmation.


• Exceeding Permitted Use: Problems arise when a borrower uses the vehicle in ways the owner didn’t authorize. For example, if someone borrows a car to run a quick errand but decides to drive out of state instead, they may have exceeded the scope of permission.


• Unauthorized Drivers: If a person uses a vehicle without the owner’s permission—such as a friend “borrowing” it without asking—the owner may not be liable for any damages caused. However, the borrower could still face liability for their actions.

Vehicle Maintenance

Car owners have a duty to ensure their vehicles are in safe working condition. Neglecting this responsibility can shift some or all of the liability onto the owner in the event of a crash.

• Owner's Responsibility for Vehicle Condition: Ensuring that critical systems like brakes, tires, and lights are functional is a fundamental duty of vehicle ownership. Failure to address known issues may lead to claims of negligence.


• Mechanical Failures: If an accident occurs due to a mechanical issue that could have been prevented with proper maintenance—such as brake failure or a blown tire—the owner may be partially or fully liable.


• Regular Inspection Requirements: Owners should conduct regular inspections or have a mechanic assess their vehicle to identify potential hazards. Proactive maintenance helps avoid accidents caused by preventable issues.


• Documentation Importance: Keeping detailed records of maintenance and repairs can serve as evidence of reasonable care. If a crash occurs despite proper upkeep, this documentation can help the owner defend against liability claims.

These special circumstances illustrate how nuanced liability can be in car accident cases. Whether the issue involves permission or vehicle maintenance, examining the facts closely is necessary to determine who should be held accountable. Consulting with a Detroit car accident lawyer ensures all relevant details are thoroughly reviewed to help build a strong case.

Exceptions and Defenses

Not every situation leads to owner or driver liability. Several defenses and exceptions apply depending on the circumstances.

• Stolen Vehicles: If a car is stolen and involved in an accident, the owner is typically not liable unless they were negligent in securing the vehicle.


• Vehicle Defects: Accidents caused by manufacturing defects may shift liability to the vehicle manufacturer instead of the driver or owner.


• Emergency Situations: Drivers acting under emergency conditions may have limited liability, depending on state laws.

Insurance Considerations

Insurance policies play a significant role in determining compensation for car accident victims.

Owner’s Policy Coverage

The vehicle owner’s insurance typically provides primary coverage in accidents involving their car, even if someone else is driving.

Driver’s Insurance Responsibilities

Drivers who borrow vehicles should ensure their own insurance provides adequate coverage in case of an accident.

Multiple Policy Interactions

Accidents involving multiple insurance policies can complicate claims. In some cases, policies from both the owner and driver may apply.

Coverage Limits and Exclusions

Policy limits and exclusions can affect the amount of compensation available, requiring thorough review by legal professionals.

Common Exclusions:

• Lending the car to unlicensed or uninsured drivers.


• Using the car for commercial purposes when the policy only covers personal use.


• Drivers who reside in the same household but are not listed on the policy.

Uninsured and Underinsured Drivers

If the driver of the borrowed vehicle is uninsured or underinsured, it can leave the injured party with fewer options for recovering damages. In such cases, victims may need to turn to their own uninsured/underinsured motorist (UM/UIM) coverage, if available.

Steps to Protect Yourself

Both car owners and borrowers can take proactive steps to reduce the risk of liability and protect themselves in the event of an accident.

For Vehicle Owners

• Proper Insurance Coverage: Ensure your policy provides adequate coverage for all potential drivers.


• Written Permission Documentation: Document any agreements regarding vehicle use to clarify permission.


• Regular Vehicle Maintenance: Keep up with recommended inspections and repairs.


• Driver Screening Practices: Avoid lending your vehicle to individuals with questionable driving histories.

For Borrowers

• Insurance Verification: Confirm that your own insurance and the owner’s policy will cover potential accidents.


• Permission Documentation: Obtain explicit permission from the owner before borrowing their vehicle.


• Understanding Coverage Limits: Review policy details to understand how coverage applies to borrowed vehicles.


• Vehicle Inspection Before Use: Check the vehicle’s condition to ensure it’s safe to drive.

What To Do After a Car Accident Someone Else Caused

After a car accident, immediate action can significantly impact your ability to recover compensation. Here are the steps you should take:

At the Accident Scene

1. Call 911 to report the crash and request medical assistance.


2. Exchange contact and insurance information with the other driver.


3. Take photos of the scene, vehicle damage, and any injuries.


4. Speak with witnesses and gather their contact information.

After Receiving Medical Treatment

If you’re recovering at home or in the hospital, you’re probably wondering how to secure compensation for your injuries and losses. Consulting a Detroit car accident lawyer is the first step toward pursuing a claim. They can help identify all potential sources of liability and negotiate with the insurance company or at-fault party to reach a fair resolution.

Legal Considerations Following a Car Crash

Several legal factors may influence your claim, including time limits, fault rules, and special provisions for claims against government entities.

Statute of Limitations

Each state imposes time limits for filing a personal injury lawsuit, seeking damages. In Michigan, for example, you generally have three years from the date of the accident to file a lawsuit. Missing this deadline can jeopardize your right to seek compensation.

Comparative Negligence

Michigan follows a comparative negligence rule, which reduces compensation based on your percentage of fault for the accident. If you’re found partially responsible, your recovery will be adjusted accordingly.

Claims Involving Government Entities

Special rules and shorter time limits often apply to claims against government agencies, such as those involving poorly maintained roads or government-owned vehicles.

Contact a Car Accident Lawyer for Help

Working with an experienced Detroit car accident lawyer can make all the difference in your personal injury claim. Goodman Acker PC has a proven track record of securing fair outcomes for our clients. With more than 150 years of combined legal experience and a passion for justice, we’re here to help you pursue the compensation you need to recover after an accident someone else caused. Contact us today for a free consultation and take the first step toward holding the responsible party accountable.