Legal Question in Insurance Law in Nevada

Re: Liability if friend I loan car to gets in an Accident

Your friend will be what is referred to in the law as a "permissive user" of your car. It is likely your policy covers such an individual, even if he is in our country illegally. However, if an accident should occur as a direct result of his negligence, you could be accused of "negligent entrustment" of the car to him, and be sued alongside him. Of course, he likely will be judgment-proof, so they will go after you for redress of their damages.

If your insurance is kept current, and you maintain adequate level of coverage, they will make claim on your policy and collect from your insurance company.

The risk in this plan would be if you were late with a premium payment or, for some other technical reason, your coverage was disputed by the insurance company on the day of his accident. If the claimants cannot collect from your insurance, you can bet they will come after you, personally, and seek to obtain a judgment they can execute against your assets and income.

There ALWAYS is risk in allowing someone else to use your vehicle, but if it can be shown that you knew he should not be driving (because doing so would be illegal) or is incapable of doing so safely, you CAN be held responsible and your insurer MAY deny coverage.