Dude Where's My Car...and Why Am I Being Sued?

You may want to be careful about who you let drive your car, as New York law holds you, as the owner, responsible for any injuries or property damage caused by anyone else who may have been driving your car with permission.  So if you let your friend borrow your car and he rear-ends Mrs. Smith, you'll be hearing from Mrs. Smith's lawyer even if you were home in bed when the accident occurred.  

New York Vehicle and Traffic Law section 388 states that "Every owner of a vehicle used or operated in this state shall be liable and responsible for death or injuries to person or property resulting from negligence in the use or operation of such vehicle, in the business of such owner or otherwise, by any person using or operating the same with the permission, express or implied, of such owner." 

You won't avoid liability simply because you did not actually say "You can borrow my car" because implied permission is enough to render you liable.  It can even extend to third parties, so if you give somebody permission to use your car and they then let somebody else drive your car, you can still be found liable. 

The injuries or damage must be caused by negligence in the operation of the automobile - blowing a stop sign, following too close, etc.  Where a pedestrian was injured by a cup thrown from a moving automobile,the owner of the car was not liable because the injuries were not caused by the operation of the automobile.

You can't avoid liability by simply telling a borrower to 'drive safely' but you can limit where and when the borrower can drive your car.  An owner can limit the scope of the permission given to a borrower, and if the borrower goes beyond the restrictions set the owner should not be found liable.  In one case a grandmother told her grandson to bring the car back once it got dark; the grandson got in an accident at 2:00 AM and the grandmother was not liable.

So be careful about who you let drive your car, and if you are going to let somebody borrow it, set restrictions to limit the chances you become liable for an accident.  What is it they say about good deeds going unpunished?