Do Not Lend Your Vehicle out to anyone

[Garrett C]

It is a lengthy story so if you don't want to read, don't let anyone drive your vehicle, EVER!

About a month ago, I was trying to be a good friend and help out one of my buddies who is getting re-stationed from Key West to Camp Pendalton. He asked if he could borrow my truck to move a few boxes to a storage facility before he transferred. Me being a nice friend and not thinking of all of the possibilities that can happen, I let him take my truck up the Keys. Around the time I was getting my kids ready for school I started getting messages on my phone that my stability control has taken over, tire pressure is low, and on-star activated. At first, I guess I really wasn't paying attention as I have twin 3 year olds and a 6 year old that I was making breakfast for. Then I got the call from my friend. He said he was in an accident, police were on scene and an ambulance was there as well. First thing I asked was are you ok and the basics. He was pretty shaken up as anyone would have been. My old tow vehicle was a 2018 Chevy Silverado with only 11350 miles on it. My truck was hit by a Toyota Corolla so that will tell you how much impact there was between the two vehicles.
Fast forward a few weeks and tons of calls later, it was determined that it was his fault, which I kept telling him from the start as he crossed Highway 1 to go to a gas station and got T-Boned. I asked was he at a light and he said no but still doesn't understand why it was his fault. If I knew that would be his thinking in a situation like that I would have never given him the keys. I settled for $38,600 for my truck from USAA and I paid around $53,000 for it just two years back. Now I am starting to get a little more angry at the situation as he said he would do anything to make it right. I would figure if I did something like that to a friend to make up the difference from what they payed me out for the truck and what I payed for it as I payed it off the first year I had it to set me up for retirement. I had him over to my house and asked him what he thought would make this horrible situation right and he said $4000. I had to laugh and said even if you had to paint one side of my truck and fix a bumper without insurance that would have been im sure $7000 or more, he totaled my damn truck, totaled another car and the people went to the hospital. I ended settling with him on $11,000 but I still was not happy when a friend tells me he will make it good, then damnit make it good and what I mean by that cover the difference between $38,600 to $52,000 which in my mind is around $13K to 14K (I also had to pay $500 for deductable). On top of everything else, it does not go to his insurance, it is the owner of the trucks fault. I have had a great driving record, so knowing that my rates are about to go up does not help either.
Just the other day I found out that there were three people in the car that hit my truck and they all went to the hospital with one having to have a fractured hip repaired. They all have lawyers and potentially suing me. My coverage had $50,000 per person $100,000 per accident for bodily harm. His policy is being gracious as of now to hopefully kick in and cover the rest. That is the only thing that is coming from his side.
I am retiring from he military in a few months and for sure was not planning for anything like this. It is a horrible situation but no one ever thinks about this kind of stuff loaning out their vehicles. So please learn from my mistake and if anyone has posted anything like this on the page, I am sorry that I did not read.


Boat and Drive safe everyone.

 

[WV Hillbilly]

It is a lengthy story so if you don't want to read, don't let anyone drive your vehicle, EVER!

About a month ago, I was trying to be a good friend and help out one of my buddies who is getting re-stationed from Key West to Camp Pendalton. He asked if he could borrow my truck to move a few boxes to a storage facility before he transferred. Me being a nice friend and not thinking of all of the possibilities that can happen, I let him take my truck up the Keys. Around the time I was getting my kids ready for school I started getting messages on my phone that my stability control has taken over, tire pressure is low, and on-star activated. At first, I guess I really wasn't paying attention as I have twin 3 year olds and a 6 year old that I was making breakfast for. Then I got the call from my friend. He said he was in an accident, police were on scene and an ambulance was there as well. First thing I asked was are you ok and the basics. He was pretty shaken up as anyone would have been. My old tow vehicle was a 2018 Chevy Silverado with only 11350 miles on it. My truck was hit by a Toyota Corolla so that will tell you how much impact there was between the two vehicles.
Fast forward a few weeks and tons of calls later, it was determined that it was his fault, which I kept telling him from the start as he crossed Highway 1 to go to a gas station and got T-Boned. I asked was he at a light and he said no but still doesn't understand why it was his fault. If I knew that would be his thinking in a situation like that I would have never given him the keys. I settled for $38,600 for my truck from USAA and I paid around $53,000 for it just two years back. Now I am starting to get a little more angry at the situation as he said he would do anything to make it right. I would figure if I did something like that to a friend to make up the difference from what they payed me out for the truck and what I payed for it as I payed it off the first year I had it to set me up for retirement. I had him over to my house and asked him what he thought would make this horrible situation right and he said $4000. I had to laugh and said even if you had to paint one side of my truck and fix a bumper without insurance that would have been im sure $7000 or more, he totaled my damn truck, totaled another car and the people went to the hospital. I ended settling with him on $11,000 but I still was not happy when a friend tells me he will make it good, then damnit make it good and what I mean by that cover the difference between $38,600 to $52,000 which in my mind is around $13K to 14K (I also had to pay $500 for deductable). On top of everything else, it does not go to his insurance, it is the owner of the trucks fault. I have had a great driving record, so knowing that my rates are about to go up does not help either.
Just the other day I found out that there were three people in the car that hit my truck and they all went to the hospital with one having to have a fractured hip repaired. They all have lawyers and potentially suing me. My coverage had $50,000 per person $100,000 per accident for bodily harm. His policy is being gracious as of now to hopefully kick in and cover the rest. That is the only thing that is coming from his side.
I am retiring from he military in a few months and for sure was not planning for anything like this. It is a horrible situation but no one ever thinks about this kind of stuff loaning out their vehicles. So please learn from my mistake and if anyone has posted anything like this on the page, I am sorry that I did not read.

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Boat and Drive safe everyone.

Glad everyone survived including your buddy. Accidents happen but that doesn’t fully excuse the consequences.

I was always taught and try to live by “if you barrow something, return it in better condition than you received it”. That has certainly narrowed the group of people that will willingly loan things to because I tend to apply that rule to them as well.

I am sorry for your loss and I am thankful for your service. I hope in the long run you and your buddy can work this out and put it behind you. (Although I wouldn’t let him barrow the truck any longer)

 

[Wayloncle]

I have never let anyone borrow my vehicles, not just because I worried about them damaging it, but I never wanted to be in that situation if there was an accident no matter who was at fault. I’ve had people ask to borrow my truck, I usually went with them on the task needed.
I had an enclosed trailer that I lent out a lot, a new co-worker asked to borrow it and he showed up at the house in a Cavalier then told me “well, yeah I’ll need to take your truck as well.” Nope. I offered to haul the stuff myself but he kept denying the offer, then I found out he was going to be making money on whatever he was going to move?‍.

My wife offered to let someone borrow our camper, I mentioned his truck wouldn’t tow it, she’s all “oh, you could just swap trucks with him for a week or whatever....”. Nope. I will happily go set up the camper for them and go get it when they are done, but it never got past that conversation and I doubt the other person would have ever taken my truck even if I offered.

I know it’s “just material”, but the situation it puts friendships in sucks.

 

[zipper]

Well that does suck. It was a nice truck. I have not had anybody ask to borrow my old rusty 06 Chevy farm truck, even my wife, since I put the wood flatbed on it. Works for me.

 

[2kwik4u]

$38,600 for your truck is a fair settlement for that truck. That's what you have insurance for, to cover the cost to replace the asset. Not to refund you the purchase price. You can replace your truck, in full, for $38.6K and be right back where you started. The circumstances surrounding the cost/maintenance/etc of the truck are not the concern of your insurance. Your buddy has offered another $4k. This should cover your deductible and any costs associated with replacing the vehicle if you can't find one you like locally. IMO, he's done what he needs to do to put another truck in your driveway "The same or better than he found it".

If you're getting sued personally, and really feel that you're not liable here, then lawyer up and let the chips fall where they may. Have the lawyer name your buddy in the lawsuit as well. Most of the time lawsuits are filed against the insurance company, not the insured person. I doubt they're coming after your life savings because your friend pulled out in front of them in your truck. We had a suit filed against us when my wife rear ended a Camry at 12mph and all 5 passengers in the Camry demanded an ambulance ride and to be checked out at the hospital. They were clearly looking for a payday, the judge saw that and ordered insurance to pay actual costs. Our insurance was great and handled all of that without our interaction for the most part. The vast majority of people just want to be made whole again and not be cash out of pocket for something that isn't their fault...….just like you.

SO, keep that in mind here. What does it take to make you whole again. To put you back where you started before you tossed him the keys. To think he's on the hook for the full $52k is absurd IMO. He's on the hook to cover the costs to get you back into a comparable pickup, which might include the deductible, travel costs to find and retrieve a like vehicle, and (if you want to be a jerk about it) any premium increase due to the claim on your insurance). You can easily do that for $42.6k or less. He's on the hook if you're sued personally. He's NOT on the hook for the $13,400 in depreciation on your asset, that is a sunk cost you just won't get back. Even if he hadn't crashed the truck, you were already out that money.

In the end, he doesn't sound like he was that valuable of a friend to begin with. I know the people I would lend my trucks to I wouldn't come back at them for lost depreciation or even the deductible if they crashed my truck/boat/motorcycle/lawn mower. My friends are worth more than money.

 

[rkluck]

So sorry you are in this situation. As mentioned above I am willing to take my truck and help but not just let it go. I know this is hard on you and it is hard on your buddy as well. It seems like you got a fair value for the truck which is good. Hopefully the civil suits will not be an issue. I have know people that dealt with that for years but finally settled on a much lower claim. Good Luck!

 

[Babin Farms]

I understand your upset with the loss of a sharp looking truck but the insurance co paid you fair market value. Unless you have the plan that replaces with a new vehicle then I think they were fair. If you were the one driving helping him move the payout would have been the same with the same injuries. Again, not trying to be a D here, just been in a few accidents in my life & been through the process.

 

[Scottintexas]

we had a neighbor who co-signed on a vehicle loan for his son, his son got in an accident, put one of his passenger in care for life and ended up getting sued because he was part owner of the vehicle,
I think 5 years later he finally got dropped from the suit or statute of limitations ran out but that was an emotional toll hanging over his head for those years wondering what he might lose,



.

 

[AZMark]

That’s a really bad situation.
I agree with others here that you shouldn’t include depreciation on the truck in your calculation. If your insurance was really short you should have negotiated with them and provided examples.

I don’t agree on premiums and deductibles at all, that’s 100% on your friend that crashed the truck, assuming he can afford it. Sure, I wouldn’t necessarily lend something out expecting to charge a friend for that, but I also don’t have a single “real” friend that would even make me ask before paying me for those losses.

Another lesson here is buy insurance in relation to your financial position and what you could lose if you get sued. You should have higher limits as someone nearing retirement. $100k doesn’t cover anything anymore.
I was in a very minor fender bender with a scamming piece of s#!t a few years ago and he got almost $60k out of my insurance over the course of a year before he finally got too greedy and sued me personally. The insurance system is a mess and all accidents are way too expensive now.

 

[thefortunes]

That’s a really bad situation.
I agree with others here that you shouldn’t include depreciation on the truck in your calculation. If your insurance was really short you should have negotiated with them and provided examples.

I don’t agree on premiums and deductibles at all, that’s 100% on your friend that crashed the truck, assuming he can afford it. Sure, I wouldn’t necessarily lend something out expecting to charge a friend for that, but I also don’t have a single “real” friend that would even make me ask before paying me for those losses.

Another lesson here is buy insurance in relation to your financial position and what you could lose if you get sued. You should have higher limits as someone nearing retirement. $100k doesn’t cover anything anymore.
I was in a very minor fender bender with a scamming piece of s#!t a few years ago and he got almost $60k out of my insurance over the course of a year before he finally got too greedy and sued me personally. The insurance system is a mess and all accidents are way too expensive now.

In addition, I highly recommend an umbrella policy.

We have one that takes over after auto/home/toy policy limits and covers up to $2M in liability. It is not expensive.

P.S. Don't think solely about what you could lose NOW. They can attach your FUTURE INCOME also.

 

[AZMark]

In addition, I highly recommend an umbrella policy.

We have one that takes over after auto/home/toy policy limits and covers up to $2M in liability. It is not expensive.

P.S. Don't think solely about what you could lose NOW. They can attach your FUTURE INCOME also.

Sorry to hijack briefly here...do you have all your stuff insured through one company? I have some toys that just didn’t work to insure through my primary insurance company and they wouldn’t issue an umbrella policy as a result so I gave up on it.

 

[thefortunes]

Sorry to hijack briefly here...do you have all your stuff insured through one company? I have some toys that just didn’t work to insure through my primary insurance company and they wouldn’t issue an umbrella policy as a result so I gave up on it.

I do, but that MAY not matter as long as minimum limits are met on the primary policies.

 

[2kwik4u]

Sorry to hijack briefly here...do you have all your stuff insured through one company? I have some toys that just didn’t work to insure through my primary insurance company and they wouldn’t issue an umbrella policy as a result so I gave up on it.

I carry an umbrella as well. Only $1mil currently, but I've been considering upping it some as cars/vehicles/doctors/lawyers/inflation/income goes up.

I have all the things under one carrier (Erie). Home, Boat, (2) cars, separate rider for some home goods (Have a couple bicycles, some jewelry, and computers I wanted agreed value coverage on). The umbrella policy is absurdly inexpensive. $221/yr. Beyond that, I get discounts on home, auto, and boat because of it. Those discounts total somewhere around $350/yr. I'm quite literally SAVING about $100/yr and have more coverage than before.

Had a previous agent that turned me onto the idea when I was with Kentucky Farm Bureau insurance. Hope I never have to use it, but can say I worry less about this sort of situation OP is in with it in effect.

 

[OCMD]

Reader's Digest version - he is a fault and will be sued directly. If he does not have insurance, or not enough, the victim will make a claim against the victim's own coverage, via uninsured or underinsured motorist. He is at at fault, not you, unless his attorneys can make out a case for negligent entrustment. Chiming in with some of the others, he does not owe you for depreciation. It does suck for sure for all involved, but the truck is worth what is is worth today, not years ago. Some states permit a "diminished value" claim, and if your state permits, you could go after your own company for more than what they paid out, so long as you can prove diminished value. There is a hired gun for everything, and the company I use as "experts" in a diminished value claim are actually pretty darn sharp. This could apply in a situation such as yours - low mileage vehicle for its age, pristine condition, etc etc. The moral of the story is anyone reading this, if you don't have at a minimum half a mil coverage on your vehicles for both liability and under/uninsured coverage, you are playing with fire. Get a large auto policy and back it up with an umbrella. Peace of mind. Then, if the unfortunate happens, i.e. some uninsured scumbag runs into you and causes you a major physical loss, you can proceed against your own coverage. I can't tell you how many cases I had to settle for 100k because that was the extent of my client's under/uninsured coverage, when if they had a million, I would have obtained all of it. But the thinking is always "I'm not going to cause a catastrophic accident I don't need high coverages" which may be accurate, but does not account for the uninsured scumbag driving around out there drunk, in a beater car with no insurance, who runs a red light and almost kills you. Get the coverage!

 

[marcham]

Sorry to hear about the terrible situation. Understand you got less than new price but that's how insurance works. If you can find a similar truck that's 2 years old the settlement should cover it. I don't think it should be up to your fried to help you replace a used vehicle with a new one. Good on him to help you out that way.

100 000 for liability is quite low.... it might be ok if you don't have any assets but normally the min recommended is 1 000 000, 2 000 000 is only about $40 more per year and we'll worth it.

 

[Garrett C]

I appreciate all of the feedback on my situation from everyone on this amazing forum. My biggest thing is as a good human is like what @WV Hillbilly said return it as is or better. Never in a million years would I expect him to pay for a whole new truck. I just wanted to make it right just like he said and in my mind making it right was getting a truck that was comparable to what I had. Not too often you are going to find a two 1/2 year old truck with less than 12000 miles in great shape. I think what we did was fair and I came out of pocket for a new truck that I was not expecting to do as I dipped into my savings for our down payment for our house after I retire. I am for sure looking at upping my policy for the 100,000/ 300,000 coverage. My buddie left town and didn’t even say goodbye which adds a whole new “what the hell is going on” but oh well I can not change the past but can only learn and I hope others can learn from my mistake of trying to be a good friend.

 

[HangOutdoors]

@Garrett C Had something similar happen many years ago. The situation sucks, I am sorry you have to go through that. In hind sight for me, it would of been cheaper for me to just pay for a U-Haul for the day out of my pocket and add the extra insurance for a friend. Good intentions at times have some hard outcomes. I also learned that no one takes or drives my/our vehicles under any circumstances, also goes for our boat, and any other toys we have owned.

Last year a relative wanted to use my truck to move. I rented him a nice large u-haul and helped him move. Win, Win.

 

[captras]

Did he not have his own insurance? My insurance covers me for any car I am driving, so in your case, had I borrowed your car and had an accident, my insurance would have covered the damage and the liability. I know this is after the fact.... but I guess the lesson is if your loan out your vehicle, verify the drivers insurance will cover him!

 

[HangOutdoors]

@captras My insurance AAA does the same thing, but it is dependent on the state and the insurance laws/regulations and how much they cover and for what. I just had a long talk 2 weeks ago with my agent, since we have a 16 year old in the house now who just got her license. He was rambling on about Michigan and Ohio and other states and how they differ and direct coverage as well as indirect coverage, etc. etc. Didn't get the total gist of everything but it appears that different states have different rules and how it applies to your coverage, whether it is your car, you were driving or not etc. So anyhow premiums went up and that was that.

 

[OCMD]

@Garrett C Good idea to increase coverages, but speaking from 30 plus years in the business that may have been enough 20 years ago but is not enough now. Truly, the increase in coverage amounts is not that much more premium, I suggest checking it out by shopping around. And if your state allows PIP, increase it to 10K.