If you’ve been injured in an accident where the at-fault driver wasn’t listed on the vehicle’s insurance policy, you might wonder whether you can still recover compensation for your injuries and losses. The good news is that in most cases, you can still file a claim, but there are important exceptions you need to know about.
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How Insurance Works in Texas
Texas is a fault state, so all drivers must carry liability insurance to protect themselves if they’re in an accident. If you’re injured in an accident that wasn’t your fault, you can recover the costs of your medical treatment, property damage, and other losses from the at-fault driver’s insurer up to the limits of their policy.
Similarly, if you cause an accident that injures someone else, your liability insurance will kick in, protecting you from paying from your own pocket.
The minimum auto insurance policy requirement is $30,000 for injuries per person, up to $60,000 per accident, and $25,000 for property damage, although drivers may opt for increased coverage.
But sometimes, a driver might not be listed on a car’s insurance policy. This might happen if an insured driver lets a friend borrow their car, or the vehicle has been stolen.
Insurance claims can quickly become complicated if the driver involved in the accident isn’t on the car’s policy.
Does Insurance Follow the Car or the Driver in Texas?
Whether you can claim your expenses from a driver who is not on a policy boils down to one question:
“Does car insurance follow the car or the driver?”
In Texas, auto insurance typically follows the car rather than the driver. So, if someone borrows your car with permission and gets into an accident, your insurance will generally provide coverage – even if they aren’t listed on your policy.
However, this “insurance follows the car” rule isn’t absolute. Several factors determine whether an unlisted driver is covered, including:
- Whether they had permission to use the vehicle
- Their relationship to the policyholder
- Whether they’re specifically excluded from the policy
- If they were breaking the law when the accident occurred
- Whether they regularly drive the vehicle.
Can You Insure a Car Not in Your Name?
While pursuing your claim, you might hear the other party claim they couldn’t be listed on the insurance because the car wasn’t in their name. However, this isn’t a valid defense. Texas law allows individuals to insure vehicles they don’t own if they have an “insurable interest” – meaning they would face financial loss if something happened to the vehicle. This applies to:
- Vehicles registered to spouses
- Cars being financed
- Company vehicles used personally
- Cars registered to dependent family members.
What Happens If Someone Wrecks Your Car and They Aren’t on Your Insurance?
Understanding how insurance works when someone who isn’t listed causes an accident helps you know your rights as an injury victim. Here are the most common scenarios:
The Driver Had Permission to Use the Vehicle (Permissive Use)
If the vehicle owner gave the driver permission to use their car, you can typically recover compensation from the owner’s insurance company even if the driver isn’t listed on the policy. This is known as “permissive use.”
For example, if someone lends their car to a friend to run an errand and that friend causes an accident that injures you, the owner’s insurance should cover your losses up to the policy limits.
A driver need not have explicit permission from the policyholder to drive the vehicle — it can also be implied. For example, a driver may claim they had implied consent because:
- The owner previously gave them a key
- They had borrowed the car before
- The owner verbally consented.
It’s vital to consult an auto accident attorney, as some policies may provide limited coverage for permissive use — or none at all.
What If the Driver Did Not Have Permission to Borrow the Vehicle?
Non-permissive use applies when a driver takes a person’s vehicle without consent.
Whether or not you can recover compensation from the driver’s insurance depends on their relationship with the owner.
If the driver is a family member, the car owner is responsible for paying your damages under the Family Purpose Doctrine — regardless of whether they gave permission — which assumes a family vehicle is intended for family use. However, most auto insurers require customers to include all household members with a license in their policy unless they can prove they already have separate coverage.
The Driver Stole the Vehicle
When your accident was caused by someone who stole a car, the situation becomes more complex. Most insurance companies will deny coverage in theft cases since the driver obviously didn’t have permission to use the vehicle.
However, you may still have options for recovering compensation:
- Filing a claim against the thief’s personal auto insurance (if they have any)
- Pursuing compensation from your insurance if you have uninsured/underinsured motorist coverage
- Holding the vehicle owner liable if their negligence made the theft possible (like leaving keys in an unlocked car or parking their car and walking away without locking it).
You can read our blog to learn about your options for paying for your medical bills and other losses if you cannot recover damages from the at-fault party or if you have urgent bills to pay while you resolve your claim.
Related: Who Pays the Medical Bills after an Accident? Your Options for Covering Your Losses
The Driver Was Specifically Excluded from the Policy
Vehicle owners can specifically exclude certain individuals from their insurance coverage. If an excluded driver causes your accident, the insurance company will likely deny your claim – even if the owner permitted them to drive. Insurers may also exclude drivers with a poor driving record, limited experience, or previous convictions for driving offenses.
The Driver Was Intoxicated
Insurance companies typically deny coverage when an unlisted driver violates the law while causing an accident. This includes driving while intoxicated. However, you may still be able to:
- Recover compensation from the driver’s personal insurance
- File a claim with your insurance provider
- Sue the driver directly
- Hold the vehicle owner liable under negligent entrustment laws if they knew or should have known the driver might drive while intoxicated.
Negligent entrustment is a legal doctrine that holds the vehicle owner liable for an accident if they permit an unlicensed, incompetent, or reckless driver to borrow their vehicle.
If the vehicle owner’s insurer refuses to budge, you can pursue damages directly from the driver.
The Driver Used the Vehicle for Commercial Purposes
Standard auto insurance doesn’t cover accidents that happen when an unlisted driver borrows a car for business purposes, such as making deliveries, rideshare driving, or other commercial activities,
Drivers must have dedicated commercial coverage, which does not carry over to other vehicles.
The Driver Regularly Uses the Vehicle
Insurance companies expect vehicle owners to list anyone who regularly drives their car on the policy.
Insurers may offer discounts on multi-driver policies, but insurance will still be more expensive than single-driver coverage. Premiums may also prove more costly based on a listed motorist’s age, driving record, and credit history.
As such, policyholders may neglect to add a regular driver to their coverage to reduce their premiums.
While insurance typically follows the car, an insurer may deny coverage if a person who regularly drives a vehicle is not listed on the policy.
What to Do When an Insurance Company Denies Your Claim
If an insurance company denies your claim because the at-fault driver wasn’t listed on the policy, you have several options for recovering compensation:
Check Whether the Driver Has Personal Insurance
All Texas drivers must carry liability insurance regardless of what vehicle they drive. You may be able to file a claim with the at-fault driver’s personal insurance provider.
The driver might also have non-owner car insurance — a special policy that covers individuals who do not have a car but drive one owned by someone else. Like standard liability policies, non-owner insurance provides coverage for injuries and property damage the driver causes.
Look for Other Liable Parties
Car accidents often have multiple contributing factors. Even if you can’t recover compensation from the vehicle’s insurance because the driver wasn’t listed, other parties might share liability:
- Other drivers involved in the crash
- Government entities (if poor road conditions played a role)
- The vehicle owner (under negligent entrustment laws).
Sometimes, accidents occur due to an auto defect — such as a brake or engine failure — and you may be able to hold the manufacturer liable. For example, you might be sharing the road with a driver who has borrowed their friend’s vehicle but is excluded from the policy. They abruptly swerve into your lane, and you try to avoid a collision, but your brakes fail. The other driver is primarily liable, but the insurer covering the car denies coverage on account of the driver being excluded. However, you may be able to hold the manufacturer liable if you can prove:
- The brake fault existed
- The manufacturer knew about the fault and failed to rectify it
- The brake fault contributed to your accident and injuries
- You would have avoided or minimized harm if your brakes worked as expected and intended.
Review Your Insurance Coverage
You should also review your insurance policy to see what it includes. Additional policies such as uninsured/underinsured motorist coverage (UM/UIM) protect you if you’re in an accident with a driver who doesn’t have insurance or whose insurance does not cover your damages. With this coverage, your insurance company will cover your losses up to your policy limit.
Personal injury protection (PIP) compensates you for medical expenses and lost wages, whoever is liable for the accident. Filing a claim with your insurance provider can help you cover any immediate bills and support your family while you recover from your injuries.
If another party is at fault for the accident, your insurance company may pay your claim and seek to recover the amount through insurance subrogation.
These policies can help cover your immediate expenses while your attorney explores other options for recovery.
How Our San Antonio Car Accident Lawyer Can Help
Insurance claims involving drivers not listed on policies quickly become complex. Multiple insurance companies might dispute coverage, leaving you struggling with mounting medical bills and lost wages while they argue over who should pay.
Having a lawyer on your side allows you to determine where your best chance at securing compensation lies and understand complex policy agreements so you know what is covered and when an insurer will honor a claim.
Regardless of who was driving the vehicle that crashed into you or whether they had permission to drive the car or not, you deserve to be compensated for your injuries when an accident wasn’t your fault.
At Patino Law Firm, we help accident victims navigate these challenging situations by:
- Investigating all potential sources of compensation
- Gathering evidence to prove the driver had permission to use the vehicle
- Identifying all liable parties
- Negotiating with multiple insurance companies
- Fighting for maximum compensation for your injuries.
Our McAllen and San Antonio car accident lawyers are dedicated to helping car accident victims receive the compensation they’re entitled to, regardless of the circumstances. Find out if you have a claim by filling in the contact form or calling 855-LAW-NINJA. You won’t pay fees until we win.
