Who is Liable When a Car Owner Lends Their Vehicle to Someone Else Who Causes an Accident?

[McWalter]

If a borrowed car is involved in an accident, the responsibility lies with the person using the vehicle. However, if the owner knowingly lends a faulty car or lends the car to someone who is under the influence of drugs or alcohol, the owner bears the liability. If the borrower becomes intoxicated or uses drugs after borrowing the car, the owner is not held jointly liable. In cases where the owner or manager of the vehicle is not the same as the user, such as in rental or lending scenarios, and a traffic accident occurs causing damage, the user of the vehicle is responsible for compensation if the accident is the fault of the vehicle. The owner or manager of the vehicle will bear corresponding compensation liability if they are at fault for the occurrence of the damage. For a car owner to be held liable after lending their vehicle in a traffic accident, three conditions must be met: the accident must be the fault of the borrowed vehicle; the insurance company's compulsory insurance coverage must be insufficient to cover the losses; and the owner must have been at fault in the occurrence of the damage.