Hit by a Borrowed Car in Texas? Here's Who Pays

Getting hit by someone driving a borrowed car can turn a simple claim into a confusing one. Maybe it was a friend's pickup, a parent's SUV, or a roommate's sedan.

The first thing you need to know is whose insurance pays. Texas has a clear starting point for that answer.

There are also a few gaps that can slow a claim down if you don't see them coming.

First Policy in Line

The Car Owner's Insurance Usually Pays First in Texas

When a driver causes a car wreck in a borrowed car, the claim goes to the car owner's insurance company first. Most Texas auto policies cover the owner, the owner's family, and anyone driving with the owner's permission.

So your claim usually starts with the owner's liability carrier, even if the owner was nowhere near the crash. The driver's own policy, if they have one, comes into play later.

You also won't pay a deductible when you file against another driver's insurance company in Texas.

When the Limits Run Out

What Happens When the Owner's Policy Isn't Enough

Texas only requires drivers to carry a small amount of liability coverage. These are the state minimums:

Texas regulators warn that these minimums may be too low when a driver causes a multi-vehicle crash. That's why it matters to find every policy that could apply.

When the owner's coverage runs out, the driver's own auto policy can step in. In Texas, a driver's insurance pays when they cause a wreck in a borrowed car and the owner doesn't have enough coverage. So one claim may have two policies behind it.

If both policies still fall short, your own coverage may help close the gap.

Uninsured/underinsured motorist (UM/UIM) coverage pays when the at-fault driver had no insurance or not enough. It also covers hit-and-run crashes. We handle uninsured motorist claims for Texas drivers, too.

Personal Injury Protection (PIP) comes with every Texas auto policy unless you turned it down in writing. It covers medical bills and up to 80% of lost wages, up to your policy's PIP limit, no matter who caused the wreck.

Policy Fine Print

Excluded and Unlisted Drivers Can Leave a Coverage Gap

Not every Texas policy covers every driver. Some policies name specific people who are excluded from coverage. Some insurers also require every driving-age member of the household to be listed.

Texas also allows "named driver" policies. These don't cover people who live in the policyholder's home unless they're named on the policy. Texas law requires insurers to explain this to buyers, both out loud and in writing, before the sale.

This is where a borrowed car claim can stall. If the driver lives with the owner but isn't listed, or was excluded by name, the owner's insurer may deny the claim.

Before you accept a denial like that, have a car accident lawyer read the actual policy language. The wording decides it.

If you carry collision coverage, you can also file with your own insurance company when the at-fault side's insurer won't pay. You'll owe your deductible, but it can get your car fixed while the coverage fight plays out.

Negligent Entrustment

When the Car Owner Can Be Held Responsible Too

Lending a car can make the owner personally responsible under a Texas legal claim called negligent entrustment. Under Texas Supreme Court case law, an injured person has to show five things:

1. The owner let the driver use the vehicle.
2. The driver was unlicensed, incompetent, or reckless.
3. The owner knew or should have known it.
4. The driver was negligent at the time of the crash.
5. That negligence caused the car wreck.

Picture an owner who hands the keys to someone with a suspended license or a history of reckless driving. Texas courts also ask whether the owner could reasonably have seen an injury coming.

This claim is separate from the insurance claim. That can matter when the policy limits are low.

Proving what the owner knew takes records. From day one, my team pulls a certified copy of the crash report.

We interview witnesses when fault is in question. We also order the driving and criminal records of every driver involved in the car wreck.

Board-Certified Since 1994

How I Help Texas Drivers After a Borrowed Car Crash

A borrowed car case can involve two insurance companies, an exclusion fight, and a claim against the owner. Each piece needs an experienced Texas trial lawyer.

Greg Jackson and I are both board-certified in Personal Injury Trial Law. Fewer than 2% of Texas attorneys hold that certification.

Our firm has helped accident victims since 1987. About 80% of our lawsuits come from other Texas lawyers who refer them to us.

I also issue letters of protection, so you can get treatment for catastrophic injuries now and pay once your case settles.

If someone driving a borrowed car hurt you, talk with a car accident lawyer in Arlington, TX who knows how Texas insurance rules work.