A friend borrowed my car and crashed it - who is liable for third party repair costs?

My friend borrowed my car and had an accident, which damaged another car. I assumed she was covered by her own comprehensive insurance, but it now turns out she wasn't. The police were involved and she will get points on her licence. I know I have to sort my own car out but what about the third party? Am I liable?

Asked on 21 February 2019 by Jane

Answered by Tim Kelly
Yes you are. Or your insurer is. It is an offence to "knowingly" let someone else drive your vehicle without the provision of cover. If you acted in good faith and was told by your friend that she was covered to drive any other vehicle under her own policy then your insurer under the road traffic act will have to cover the third party claim against you.

It does depend on how the third party claims: If they are told that your "friend" was not insured, and no policy is in place, then they would seek to raise a claim with the MIB (motor insurance bureau) in this situation. It will not affect you. If the other party makes a claim against your insurer under the road traffic act, then your insurer could seek recovery of these costs "if you knowingly" allowed a person to use your vehicle whilst they were not insured to do so.

You would then have to sue your friend for these losses. If as above you acted in good faith, then your insurer may well go after your friend for these losses.
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