The question of whether a claim or a lawsuit can be filed is a separate question from whether such a claim or lawsuit can prevail.
People file meritless claims all the time, and they lose.
Sometimes an insurance company will make a judgment that it will cost less to settle than to try a case, even if the claims are without merit.
Consult a lawyer who handles auto accident claims in your locale. I suspect your insurance won't cover it because, as you say, your friend was driving your car without your permission.
Good luck. This isn't to be taken as legal advice, as I don't hold Arizona licensure. If you need legal advice, please consult a lawyer who holds Arizona licensure.
Usually claims are made against the company, but when a lawsuit is filed, the driver and possibly the owner are named as defendants. The answer to the question of who was at fault will be determined by the facts which can be proved .
Assuming you had insurance coverage on your automobile, coverage will probably be denied by your company because your friend took your car without your permission. If he had your specific permission or implied permission, he will be covered under your policy.
Mr. Lundeen is licensed to practice law in Florida and Vermont. The response herein is not legal advice and does not create an attorney/client relationship. The response is in the form of legal education and is intended to provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that, if known, could significantly change the reply and make it unsuitable. Mr. Lundeen strongly advises the questioner to confer with an attorney in your state in order to insure proper advice is received.
In Arizona, the lawsuit cannot be filed against your insurance company. Instead, it has to be filed against the person that is alleged to be at fault. You were not in the accident. It is unlikely any lawsuit against you would prevail.
As far as whether you insurance would cover your friend, it usually would, although the lack of permission can - depending on the facts - alter that coverage.
However, you insurance company is well prepared to handle the defense if the case. If it is without merit, you can expect the insurance company will take every measure to protect itself from paying anything it can avoid paying.
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