According to Pennsylvania rules, can I be accused of negligent entrustment if I loaned my car to a friend who was involved in an accident?

According to Pennsylvania rules, you can be sued for loaning your car to a friend under a theory known as "negligent entrustment." A car owner is legally responsible for the negligence of a driver if the owner loaned the car to the driver knowing that he or she would drive recklessly. But this liability may depend on whether the owner has opted into or out of Pennsylvania’s no fault insurance system.

What are the Pennsylvania rules for negligent entrustment?

Negligent entrustment doesn't apply every time you lend your car to someone. It applies only if your vehicle loan was reckless or negligent. If you knew that there was a strong probability that damage would result, these Pennsylvania rules can apply. Examples of negligent entrustment may include:

• Lending a vehicle to minor children who just obtained their license but do not have experience in rush hour traffic or expressway driving 
• Lending a vehicle to potential drivers who are visibly intoxicated or drugged 
• Lending a car to a friend for racing or other reckless purposes. 

The mere fact that you lend a vehicle to someone who then gets in an accident does not mean that you are liable. Your liability will depend on the circumstances.

According to Pennsylvania rules, if a claim is made against you based on negligent entrustment, your insurance company will likely cover the accident and pay for the damage caused by the negligent driver. But you, as the car owner, might be facing higher premiums in the future for your insurance.

How do choice no fault insurance rules apply?

Car accidents in Pennsylvania are also complicated by the fact that the state is a "choice no fault state," which means choice no fault insurance rules apply. When you purchase car insurance, you have the obligation to opt into or out of the choice no fault insurance system. If you opt into the no fault system, claims and liability may be more limited. Those who opt into the choice no fault insurance system can neither sue another driver, nor be sued, in the event of a car accident. To determine your potential liability, you will need to check your insurance policy to determine if you chose this "choice no fault" or "limited tort" coverage. 

Because negligent entrustment situations are complex, especially in light of the choice no fault insurance rules, it is always in your best interests to contact an experienced car accident attorney if you face potential liability.