In Massachusetts, car insurance follows the vehicle, not the driver. So what happens if someone borrows your car and causes an accident? While you might assume your friend would be held responsible, the state’s laws often place financial liability on the vehicle owner’s insurance first—regardless of who was driving.

This article breaks down how Massachusetts insurance law handles accidents involving borrowed cars, when the owner is liable, and when other parties may be responsible.

Car Insurance in Massachusetts: The Basics

Massachusetts Is a No-Fault State

Massachusetts follows a “no-fault” insurance system. This means that after an accident, each driver’s own insurance covers their medical expenses—up to a certain limit—regardless of who caused the crash.

However, property damage liability (PDL) and bodily injury liability (BIL) to others still fall under fault-based rules. When someone borrows your car and hits another driver, your auto policy typically covers the damage they cause.

The Car Owner’s Policy Comes First

In most scenarios, car insurance is tied to the vehicle, not the person behind the wheel. That means when a friend drives your car and gets into an accident, your insurance is the primary coverage.

Only after your policy’s limits are exhausted does the driver’s personal policy (if they have one) become relevant. This is referred to as secondary coverage.

Permissive Use vs. Non-Permissive Use

When You Gave Permission

If you gave your friend permission to use your car, your insurance will likely be responsible for damages. This is called permissive use, and most Massachusetts insurers honor it under their liability coverage terms.

Keep in mind:

• If the friend caused an at-fault accident, your liability coverage would apply.
• Your collision coverage (if you have it) may cover repairs to your own car after you pay your deductible.

When You Did Not Give Permission

If your car was taken without your knowledge or consent—known as non-permissive use—you may not be liable.

Examples include:

• A friend takes your keys and drives your car without asking.
• Someone uses your vehicle while you're asleep or away without your approval.

In such cases, your insurer might deny the claim. The unauthorized driver could be held personally responsible, but recovering damages could be difficult, especially if they lack insurance or assets.

What If the Friend Was Intoxicated or Unlicensed?

If you knowingly allow someone who is intoxicated, unlicensed, or otherwise unfit to drive your car, you could be held personally liable beyond your insurance limits.

This is considered negligent entrustment—a legal concept where someone is held responsible for allowing a dangerous individual to use a vehicle.

Massachusetts courts have allowed accident victims to sue vehicle owners directly in such cases, particularly when:

• The driver has a history of reckless driving.
• The owner knew (or should have known) the driver posed a risk.

Damage to Your Own Vehicle When Someone Else is Driving it

Collision Coverage Applies

If your vehicle is damaged when your friend crashes it, you’ll need collision coverage on your policy to pay for the repairs—regardless of who was driving.

Things to keep in mind:

• You’ll still need to pay the deductible.
• If you don’t have collision coverage, you may be left paying out-of-pocket.

Subrogation and Recovery

If your insurer pays for the damage, they may pursue subrogation, meaning they try to recover the costs from the driver or their insurer. This happens more often when the friend is not on your policy or the insurer believes you weren’t responsible for allowing the use of the car.

When the Driver Has Their Own Insurance

Secondary Liability Coverage

If the driver who caused the crash has their own auto insurance, it might act as secondary coverage once your policy limits are reached.

This is most relevant when:

• Injuries or property damage exceed your liability limits.
• The crash involves multiple vehicles or serious bodily harm.

However, not all policies offer liability coverage to drivers when they’re operating vehicles they don’t own. It depends on the terms of their policy.

Special Cases: Named Driver Exclusions and Commercial Use

Excluded Drivers

If your friend is specifically listed as an excluded driver on your policy, your insurer likely will not cover any damages from an accident they cause.

This is a serious issue—if you let an excluded driver use your car and they crash it, you may have to cover everything out-of-pocket.

Commercial or Rideshare Use

Massachusetts personal auto policies generally exclude coverage when the vehicle is being used for commercial or rideshare purposes unless you have a specific endorsement.

If your friend borrows your car to do food delivery, drive for Uber, or transport goods and crashes, your insurer might deny the claim entirely.

Real-World Examples in Massachusetts

1. Worcester Case, 2023: A driver borrowed a friend’s car with permission and rear-ended another vehicle. The owner’s insurer paid the liability claims, but the damages exceeded the coverage limit. The at-fault driver’s own insurance covered the remainder under secondary coverage.
2. Boston Case, 2021: A friend took a car without consent and struck a parked car. The vehicle owner’s insurer denied the claim. The owner had to sue the unauthorized driver for damages but recovered nothing due to the driver’s lack of insurance and assets.
3. Springfield Case, 2022: A parent lent their vehicle to their 19-year-old son’s friend, who had a suspended license. After a major accident, the insurer paid claims but sued the owner for negligent entrustment, arguing they failed to verify the driver’s legal eligibility.

How to Protect Yourself as a Car Owner

• Don’t lend your car casually. Only allow responsible, insured drivers to use it.
• Check your policy for named driver exclusions and permissive use clauses.
• Maintain sufficient coverage, including collision and comprehensive, to reduce out-of-pocket expenses.
• Document permission if you’re lending your car for an extended period or unusual purpose.

Conclusion

In Massachusetts, when a friend crashes your car, your insurance typically pays first—even if you weren’t driving. The financial burden often falls on the vehicle owner, not the driver. Understanding the nuances of permission, insurance coverage, and potential liability can protect you from unexpected expenses. Always verify who you’re handing your keys to—and make sure your insurance policy has you covered.

Injured? The Office of Brandon J. Broderick, Personal Injury Lawyers, Can Help

If the unfortunate happens and you’ve been injured in an accident, don’t go at it alone. An experienced lawyer can advocate for your best interest and pursue fair compensation for your damages. At Brandon J. Broderick, Attorney at Law, you can count on us to work tirelessly for your quality of life. Our long track record of success has helped people like you move forward after sustaining an injury caused by another’s negligence.

Contact us now for a free legal review.