Bankruptcy. Or you can allege that your friend stole your vehicle and let him get prosecuted, then you will not be liable.

As the owner of the vehicle, and not the actual driver, you are only responsible for $15,000.00 of the damage. Per California Vehicle Code, a registered owner is only resposible for $15,000.00 of the damage caused, when the owner is not the driver. If your friend did not have your authority to drive the car and took it without your knowledge, you will not be liable for any damage, as Mr. Marman stated. If Edison sent you the demand for payment, you will need to contact Edison and explain to them that you were not the driver and that you don't have the funds to pay etc. You can attempt to negotiate with them or make monthly payments. In any case, you will not owe more than $15,000.00 tops. I would attempt to negotiate with them for cents on the dollar. In addition, if you pay out anything to Edison, you can then sue your friend and get reimbursed by your friend for the payment you made to Edison. Next time, don't loan out your car to someone who is excluded on your policy.

Your car, you loaned it, you are going to be jointly liable with the 'friend' up to the $15k limit of liability of registered owners. You will need to counter sue him and hope for the best.

Your liability is $15K per Vehicle Code, unless they prove independent negligence pursuant to permissive user theory. In other words if your friend was an unlicensed driver or was suspended with numerous driving problems, such as tickets, accidents, DUIs, etc., and you KNEW it before allowing him to drive your car, then your liability will exceed $15K.