My friend asked me if she could borrow my car next week to run some errands. I told her I' d think about it. I know that if she has an accident where she is at fault, it will go on MY insurance record and my rates will go up as a result. That' s bad enough, but now I have heard something about liability as well. Could I be held liable if she injured someone while driving my car? -- Playing it Safe

Dear Playing:

Yes, you could be held liable, and it could cost you a lot more than higher premiums.

Let's say your friend is held responsible for a serious accident that results in a lawsuit. As the owner of the car, you are legally responsible for the negligence of its driver. So if your friend is judged to be at fault, and the judgment against her exceeds the limits on your policy, guess who will be left holding the bag? YOU will be held personally liable for the shortfall. Never mind that you weren't operating the vehicle, and you weren't responsible for the accident. That's the law.

This means that a successful litigant could pursue you (as well as the driver) for the excess amount, possibly through such drastic measures as garnishment of your wages, and seizure and sale of your home or any other such assets.

You could even lose your licence until you've paid up. For example, suppose you are unable to pay the excess amount. The injured party, however, carries excess coverage, so his or her own insurer pays it. So far so good, right? Wrong! The insurer then has the right to seize your licence until you pay back the portion of the excess that the insurer has paid out.

Now, do you REALLY need to think any longer about lending your car?