This question cannot be answered with a simple "yes" or "no", since most car accidents are unique from each other. Establishing fault will play a key factor in this type of case. If your friend caused the accident, you may be responsible for the damages and injuries caused. Your insurance policy covers the vehicle even if you are not driving it and since the policy is in your name, you are responsible for the accident the vehicle was involved in.
However, if the other driver caused the accident, you may not be liable for any damages. In this case, if your friend sustained injuries, both you and your friend need to seek legal counsel. You may need to file a claim to recover the damages to your vehicle and compensation for the injuries your friend sustained.
Car accidents can cause very serious injuries and even if your friend was injured while driving your vehicle, if they were not to blame for the accident, they deserve compensation for their injuries. You, also, deserve compensation for the damage done to your vehicle and since it's not illegal to allow someone else to drive your vehicle, as long as it's insured, a Houston accident attorney can help you gain full compensation for all damages.
Due to many variables, however, this type of case can be very tricky. The other driver could be drunk, uninsured, considered a distracted driver, driving a company vehicle or a number of other possibilities. All the different variables will have some bearing on whether or not you become responsible for the damage caused, but in most cases, you won't be responsible for more than the property damage.
Another variable that could make a different is whether your friend has current car insurance or not. If their carry current insurance, in some cases, it will cover the damages if they are found at fault for the accident. It all depends on the type of policy and how the accident really happened. Check with your insurance company before you decide to loan your car to any of your friends.
If you loan your car to someone else and they are involved in an accident, you need to seek legal counsel. This will help to clear up any questions you may have. Some cases will be very "cut and dry", whereas others may not. Either way, the insurance companies will use everything they can to their advantage, but with the help of an attorney, you will be protected.
The last thing you want to do is find out you signed some type of document with the insurance company you shouldn't have signed. Always consult with an attorney before signing any type of legal document with the insurance company. This will help to ensure you only pay for what you are responsible for and you gain compensation if the driver that hit your vehicle was at fault.