What is the level of legal responsiblity if an Unlicensed Driver gets into an Accident with your car?

This is a legal question I have had for several Years now. I reside in New York State if that makes a difference. But I am in a situation where an Unlicensed Driver is operating a Vechicle Insured and Registered to me as the Owner. And even though I have tried several times over the last 10 Years this person basically refuses to complete getting their Drivers License for my State. They have gotten Learners Permits several times over the Years. Been stopped by LE a couple of times and been fortunate enough to have gotten out of being sited for being an unlicensed driver through various means I won't go into.
My question is what is my legal responsibility beyond the insurance on the vechicle? Especially if this person happens to get into an accident? I know that if they are finally stopped by a hard nosed cop they will be told to park the vechicle and start walking. But will LE or Personnal Injury Lawyers be able to come after me for letting an unlicensed driver operate the vechicle?

For a preview, here's a current case in which the parent of the unlicensed driver was charged in a fatal accident.

Additionally, if he gets in a wreck for which he is at fault, the injured parties will come after YOU, not your roommate. While your insurance may provide coverage and pay damages up to your policy limits, your policy may have a "coverage defense" under which the insurer can deny coverage if you knowingly permit an unlicensed driver to operate the vehicle.

In this litigious society, In the event of an accident, you can be certain that while you may dodge criminal responsibility, you will be sued in civil court. In the long term, even if the insurance company pays a claim, expect your coverage to be cancelled.

--This communication does not constitute "legal advice", nor does it form an attorney-client relationship. This communication is provided for the purpose of general informational purposes only. Additional facts and information pertaining to the relevant question above could significantly change this response and make it inapplicable to your personal circumstances.--

Why?

Why the hell would you allow this to go on for 10 years? You are enabling this driver to put you at risk. The fact that you are aware of it, have allowed it to go on for ten years, will add up to higher liability, especially in the eyes of a jury.

Somehow I imagine that if we were to check your pockets and your friend's pockets, we would find yours to be much deeper than the friend's pockets.

I think slowlick hit on a few issues you need to consider.

I have a better idea. Try calling your insurance agent and ask him this question rather than a bunch of people on a silly whore board. See how quick he cancel's your insurance.

slowlick thank you for the link and the advice. tigercat unfortunately this person is a Family member that was doing this long before we met using their own Car & Insurance. This person is quite selfish & self obsorbed. And frankly doesn't give a Rats Ass about the consequences of their actions to anyone else. Between this and some other things that have happened in the last few Months I am at the point of seriously considering perminantly severing my relationship with them.

Regardless of how the situation started, you've got to take control of it. Only you know if its developed to the point where such drastic measure as cutting all ties is called for. The main thing is to protect yourself and stop letting them take advantage of you. If you do cut all ties don't just leave the car situation hanging. If its registered in your name its your responsibility. That has to be dealt with.

Your insurance policy probably requires that you name users of the vehicle. Are you naming this unlicensed driver? If not, don't be surprised if your policy gets canceled after the next time this person is stopped by the police. Good luck finding another insurance carrier.

Yes, you may be held liable for damages caused by an incompetent or unlicensed driver whom you allow to use your vehicle. Do you have any assets? Enjoy them while they last.

Perhaps a "walkaway" could work.

1) Gift the vehicle to the user, take him/her down to the title office and transfer the title. Then, remove the vehicle from your insurance policy and thank your lucky stars that you have not been caught up in the tort system.

2) Alternatively, sell the vehicle to an auto dealer and get the heck out of Dodge.

You knowingly let someone who does not know how to drive (with documentation of that). That's a proven track record of negligence.

But what the fuck, what's the worst that can happen?

Personnal Injury Lawyers be able to come after me for letting an unlicensed driver operate the vechicle?

Yes, next question

You know the answer and yet expect a bunch of Horn Dogs to provide you with some sort of idea to justify your situation.

I will put it in real world terms, if it were me and your Unlicensed driver hit me, and then I find out it has been going on for over 10 years, I will let my insurance handle things and then I will contact 3 personal injury lawyers and see who is hungry enough to go after every asset you have. And I will never have to spend a cent because it will all be on contingency.

Plain enough for you?

You know the answer and yet expect a bunch of Horn Dogs to provide you with some sort of idea to justify your situation.

I will put it in real world terms, if it were me and your Unlicensed driver hit me, and then I find out it has been going on for over 10 years, I will let my insurance handle things and then I will contact 3 personal injury lawyers and see who is hungry enough to go after every asset you have. And I will never have to spend a cent because it will all be on contingency.

Plain enough for you? Originally Posted by jframe2

Me too!

You know the answer and yet expect a bunch of Horn Dogs to provide you with some sort of idea to justify your situation.

I will put it in real world terms, if it were me and your Unlicensed driver hit me, and then I find out it has been going on for over 10 years, I will let my insurance handle things and then I will contact 3 personal injury lawyers and see who is hungry enough to go after every asset you have. And I will never have to spend a cent because it will all be on contingency.

Plain enough for you? Originally Posted by jframe2

Without suggesting I would follow your lead in this, I would agree that it would piss me off greatly to find out that the owner of the vehicle that hit me had allowed an unlicensed driver to drive for over 10 years.

Look at it a different way: Do you think your excuses to why you allowed it are going to sway the average juror (like me or jframe) more than the fact that you allowed this person to drive?

Go ahead, keep rolling those dice. Someone will hit the jackpot one day, and the jackpot will be you.

Jframe is spot on.... pull the plug on the unlicensed driver - let them walk/ride the bus... and even if they get the license, do not allow them to use your car... duhhh

Perhaps a "walkaway" could work.

1) Gift the vehicle to the user, take him/her down to the title office and transfer the title. Then, remove the vehicle from your insurance policy and thank your lucky stars that you have not been caught up in the tort system.

2) Alternatively, sell the vehicle to an auto dealer and get the heck out of Dodge. Originally Posted by ck1942

This (1) is exactly what I did years ago when I shared a house with room mates. This one friend had too many tickets he never paid, couldn't get his license renewed, didn't get insurance because fuck knows why, etc... So this fucktard had his own car but he kept ricing it out (not modding, ricing a silly 4 banger). Eventually it was constantly broken due to the ricing.

I had a spare car and he kept throwing temper tantrums begging me to let him drive it. I obviously didn't want the liability of an uninsured and unlicensed driver. Sold the spare car to him and made him sign a bill of sale and go transfer the title.

I considered telling him off, but hes been my friend for a long time and plus I was about to buy a new car.

ALSO: Never listen to these kind of people when they say "oh nothing will happen, etc..." If they were responsible people who bad shit didn't happen to, they wouldn't be morons without licenses and insurance and would have their own cars. This applies to all things, not just cars of course.

1. Letting an unlicensed driver operate your vehicle constitutes Negligent Entrustment in most jurisdictions. The law assumes that anyone who is a licensed driver is competent to operate a vehicle; in the same vein, the law assumes that anyone who is not licensed is not competent. This legal presumption can sometimes be refuted by contrary evidence, but that will depend on the jurisdiction.

2. In the event that your insurance company finds out, you will most likely NOT be immediately canceled, especially if you've been a loyal customer with few or no claims. Rather, the insurer will probably require you to exclude that person specifically from any and all coverage, meaning the person, and you, could be personally responsible for any damages, depending on the liability for whatever crash the unlicensed driver was involved in.

3. Nor do you have to worry about your personal assets in most circumstances. In the event that this person broadsides a special ed bus and causes half a million dollars worth of injuries and property damage, rest assured that you will be sued. In just about every jurisdiction in the country, the duty to defend is greater than the duty to indemnify. That means that even if the insurer doesn't think they should provide coverage, they still have to provide a defense. This is usually done under a Reservation of Rights, which means that you are not to assume that there will be coverage just because the insurance carrier is investigating and/or defending the claim.

4. If the driver was at fault, and not necessarily 100% at fault, there will probably be a judgment against both the driver, for his/her negligence, and you for Negligent Entrustment for allowing them access to your vehicle in the first place. So what? They have a judgment, and before they can move against your assets you file for federal bankruptcy protection, discharge the debt (keeping your home and assets in the process) and move on.

5. And the insurance company cannot raise your rates, because they are excluding the risk that concerns them. They're only allowed to collect premium for drivers they insure; once they exclude this person, he/she is no longer a factor in setting your rates.

None of this is legal advice, but rather is based on my personal experience in this field for more than two decades. Anyone who wants details can send me a PM.

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Legal Principles Claim Specialist
American Educational Institute, 2001