Auto Insurance Claims: Accident While Unauthorized Driver Of A Rental Car, car question, owner liability

Question
QUESTION: My question involves insurance law for the state of: Tennessee

My friend rented a car (when he was uninsured) back in Nov 2007, for a week. We went out one time, and he insisted that I drive because he was tired, and I was not supposed to drive it . . .

I drove, got in an accident - my fault. With another rental car.

The rental car (car 1) was totaled along with another rental car (car 2) (what a coincidence!!)

Anyway, he obviously violated the "contract" with the rental company. They kept calling me and him back and forth, and finally, I got a bill from the rental company of car 2, for $20,000.

My insurance refused to pay since I was an unauthorized driver.
Car 1 Rental company refused to pay since he let an unauthorized driver drive.

I told him I am going to pay $100 per month, and sent it my first payment . . .

Is there a way I can get myself out of this? And what kind of laywer would be able to help me out here?


ANSWER: Hi Sean,

Unfortunately, I do not know of any way out of this. You had an accident that was your fault driving a rental car that you were not authorized to drive. You are therefore responsible for all of the damage to both cars. You can attempt to reach a settlement. So if you owe $20,000.00 and if you have $10,000.00 in cash you could try to offer that as settlement in full. Otherwise you will just have to make a payment arrangement. The only other alternative that I know of would be to declare bankruptcy.

I hope this helps
Richard Hixenbaugh

---------- FOLLOW-UP ----------

QUESTION: Where does owner-liability comes in? I was not the owner of the car? Thanks again!

Answer
Hi Sean,

Neither you nor your friend were owners of the car. Your friend rented a car and he did not have insurance. Then he let you drive the car and you were not authorized to do so.

Your friend is technically responsible for the car he rented since he was on the contract. You are responsible for the car that you hit since you were the at-fault driver of the car. However, your friend could file suit against you to also pay for the car he rented since the accident was your fault.

Since there is no insurance coverage here you and your friend are personally responsible for the damages to the cars. He is responsible for the car that he rented and you are responsible for the damage to the car you hit.

There is nothing that can be done about this except for the items that I stated earlier. Either make a payment arrangement, reach a settlement agreement or file bankruptsy. I'm sorry, but these are that only choices I am aware of.

I hope this helps
Richard Hixenbaugh