Why You Are Liable for the Negligence of Others Who Drive Your Car

Under Michigan law, liability for a car crash can sometimes extend beyond the driver who caused the collision. Critically, the owner of the motor vehicle can also be held liable in a lawsuit for an accident caused by the negligence of someone else who was operating it. While Michigan law significantly broadens the scope of liability in auto accidents, it’s important to understand the Owner Liability statute and how you can avoid potential legal responsibility.

What Law Holds Vehicle Owners Responsible for Another Driver’s Negligence?

Michigan’s owner liability statute MCL § 257.401 makes the owner of a motor vehicle liable for injuries caused by negligent operation of a vehicle if the vehicle was driven with the owner’s express or implied consent or knowledge. As long as an owner gave someone else permission to use the vehicle, they can be held responsible for an accident victim’s damages, even if they were not present in the car.

Express consent means the owner gave explicit permission verbally or in writing. In contrast, implied consent does not require direct permission. Rather, it exists when there is a reasonable inference of permission. For example, implied consent can arise when the car keys are left in an accessible location for a family member to use. If a household member is allowed to regularly use the vehicle, there may be a reasonable inference of permission, even if they were not expressly given permission for the specific trip when the accident occurred.

An owner is generally not liable if the car was stolen or driven without permission. However, consent may be presumed if the driver was an immediate family member.

Considerations to Avoid Owner Liability

While Michigan’s owner liability statute is strict, there are a few things you can do to help ensure you protect yourself from an unexpected lawsuit. Some measures to help avoid owner liability for a car accident caused by another driver include:

• Titling each spouse’s car in their name only: Spouses should never both be title owners of the same vehicle, otherwise both can be held liable if one of them negligently causes an accident involving the vehicle. Even worse, both spouses are liable for the negligence of any third party who operates their vehicle. Instead, the vehicle should be titled only to the spouse who drives that vehicle the most.
• Not allowing non-family members to operate the vehicle: Family members should be instructed not to let non-family members drive a vehicle. For example, a child’s college roommate who borrows a vehicle and negligently causes an accident will result in liability for the family member who is the owner of the vehicle, along with the roommate, for injuries.
• Titling the car in the name of an LLC: Consider having vehicles driven by others, such as those in connection with a business or vacation home, titled in the name of a corporation or limited liability company. This can help eliminate personal liability for the negligent operation by others.

It’s particularly important for business owners to be particularly mindful of the owner liability statute as they can be held vicariously liable for accidents caused by employees and others driving company-owned vehicles. A skilled attorney can best advise on the proper titling and insurance structure for your fleet and provide counsel regarding managing liability risks.

Contact an Experienced Michigan Attorney

If you have questions concerning how to protect yourself from incurring liability under Michigan’s owner liability law, a knowledgeable attorney can best advise you. With offices in East Lansing, Mt. Pleasant, Grand Rapids, and Detroit, The Gallagher Law Firm offers professional services to business owners and individuals for a broad scope of legal matters. To learn more about how we can assist you, contact us online, call (517) 853-1515 or email bpg@thegallagherlawfirm.com.