At Powell Law, one of our areas of practice revolves around personal injuries, especially those suffered in motor vehicle accidents. Our attorneys, past and present, have represented motor vehicle accident victims for 110 years. “So what happens if I loan my car to someone who causes an accident?” Clients have asked this question on numerous occasions. At some point, circumstances arise that require an individual to loan a car out of necessity, perhaps because of an emergency. Please note that this blog does not apply to situations where an individual operates a motor vehicle on behalf of an employer.
The Pennsylvania Motor Vehicle Code found in 75 Pa. C.S.A. § 3101 et seq, governs the 
operation of motor vehicles in Pennsylvania. While any motorist that violates a statue is guilty of negligence per se, a party may not recover any damages unless he establishes that negligence is the proximate cause of the injury.
As to the question at hand, a partial answer is found in 75 Pa. C.S.A. § 1574, which prohibits motor vehicle owners from “authorizing or permitting an automobile owned by him or under his control to be operated by any person without a valid driver’s license.” In order to find liability under this statute, the vehicle owner must have known or had reason to know that the individual authorized to operate the vehicle did not have a valid driver’s license.
However, regarding more common lending situations, Pennsylvania law allows an accident victim to sue another individual for loaning his car to a friend under a negligent entrustment theory. Pennsylvania has adopted the following definition for determining negligence based upon entrustment:
it is negligence to permit a third person to use a thing or to engage in an activity which is under the control of the actor, if the actor knows or should know that such person intends or is likely to use the thing or to conduct himself in the activity in such a manner as to create an unreasonable risk of harm to others.
The vehicle owner must have known or had reason to know that the individual authorized to operate the vehicle would do so “in such a manner as to create an unreasonable risk of harm to others.” Negligent entrustment is a separate cause of action that requires an initial finding that the driver was causally negligent before a negligence case against the owner may proceed.
Simply loaning a vehicle to a party who causes an accident does not create liability; rather, the ultimate result will depend upon the circumstances of each case. However, any liability may be dependent upon the choice the owner has made regarding “choice no-fault” or “limited tort” coverage in Pennsylvania.
Because the aforementioned situations are complicated, it is wise to contact an experienced personal injury attorney if you face potential liability for negligent entrustment. If you or a loved one has suffered any type of injury resulting from a motor vehicle, motorcycle, or truck accident, contact Powell Law at call (570) 961-0777. The consultation is FREE and you don’t pay anything unless we win.
