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Anyone have car insurance knowledge?

flmomma08's picture

So I am just having the week from hell!

Yesterday we had a few friends over and we ordered takeout for dinner. My friend was going to go pick up the food but my car was blocking hers in so she just took my car (food place is only 10 minutes away).

In between my house and the food place, she gets into an accident. The story she told me is a little odd but it was raining and I think maybe it just happened really fast. She said the cop who came out did not give either driver a ticket.

Obviously the friend is not listed on my car insurance policy. She also does not have her own insurance policy.

There isn't much damage to either vehicle so I was just expecting my friend to pay to have my car fixed since no one was at fault (according to her) but this morning I received an email from my insurance company that the owner of the other car involved put in a claim.

Any idea what to expect here? The insurance company wants to speak to me but I have no clue what to even say since I wasn't there and am not sure what actually happened. I'm thinking maybe I didn't get the full story from my friend.


hereiam's picture

You will just have to be honest and let them know that you gave permission to your friend to drive your car. Most policies cover situations like that. It is still going to suck because it will be on your insurance record and you may have to pay a deductable or whatnot.

It sounds like you (and the other driver) feel like your friend is the one at fault.


flmomma08's picture

I believed her until I saw that the other driver put in a claim. Now I am wondering if there is more to the story. I was hoping to avoid the insurance company all together and just have her pay for my car but looks like that won't be possible now. Dash 1

SteppedOut's picture

Just because the other person put in a claim does NOT mean they were not at fault - or that your friend only was at fault. It could very well be they BOTH did something so that they have equal fault.

The police office did not ticket anyone, but there IS a police report. Get the police report. Talk to  your friend. Talk to the police officer.

Did you report the accident to your insurance company - even if you are not going to file a claim, you are supposed to report damage.


If it was not your friend's fault, don't just "take one for the team". Start getting ahead of this before you are stuck with a $15k claim on your insurance record.


flmomma08's picture

No, I haven't called the insurance company yet since I am not sure what actually happened and I don't really know what to tell them other than that I let someone else use the car. I just called the police department (we live in a small town) and left a message so hopefully they will get back to me soon and I will request the written report as well. Thank you!

HowLongIsForever's picture

Auto insurance can vary greatly from state to state and policy to policy so you're probably not going to get any concrete answers.

Under the umbrella of a true no fault state with broad form coverage you would most likely be covered.  If your friend is a named insured on another policy your company may attempt to collect from them.  You may be responsible only for your deductible or you may be responsible 100% out of pocket.  It depends entirely on your policy.

However, the rules can be all over the place based on the state laws and regulations in addition to the coverage type (broad vs collision or the amount of uninsured/underinsured coverage for example).

Your best bet would be to get a hold of the police report to see what statements were provided and if anyone admitted fault.  What that report contains would determine your next step i.e. speaking to an attorney or your insurance company.

Bottom line is your insurance company is looking for their out here.  They likely aren't looking to protect you unless it would be an added benefit of protecting themselves.

Go through your policy and find out if you have un/underinsured coverage, if a driver not specifically named is covered, etc. and get a hold of that police report.

Talk to your friend and let them know that there has been a claim filed and the insurance company is conducting and investigation, you will hopefully get some level of cooperation/support from your friend if they understand the situation has escalated.

Good luck! 

MrsStepMom's picture

As long as she is not excluded on your policy then she is fine. Of course the other driver put in a claim, that is their right and I wouldn't rely on a random person to pay me. I would ALWAYS go through my insurance. Some states legally require a driver to have insurance if they have a license, some just require a car to be insured. Since she wasn't ticketed I would assume you state does not require her to be insured and even if she wasn't your insurance covers that anyay. I would expect her to pay the deductable and if you are at a no fault state your insuance will go up which sucks but is kind of the risk you take when driving at all, let alone someone borrowing your car. I am not sure why you don't necessarily believe her story just because the other driver filed a claim, unless the report says something other than what she said (but I can't imagine you'd even have the police report yet). It is normal for him to file a claim, his vehicle was damaged. Most people don't just pay cash for major car repairs due to accidents, and OF COURSE NOT if he believes it wasn't his fault. Not getting a ticket doesn't mean you aren't at fault, it just means you didn't break a law. You can make a mistake, which is your fault, but not break the law.

flmomma08's picture

Thank you! As far as the insurance, the damage to my car looked to be less than my deductible, and knowing my rate would also go up, that is why I opted to have the friend pay for it out of pocket (I know she has the money). I assumed the other driver would cover their own vehicle if no one was truly at fault but maybe they went through their insurance for a rental or something, who knows. I am going to request the police report and hopefully I can get the full story.

MrsStepMom's picture

Well keep in mind you don't know the damage until you see it. I had 15k worth of damage to my Benz and it just looked like a cracked bumper, when someone rear ended me. Ya not common really for someone to pay out of pocket, especially adding in rental for possibly weeks, etc. Yes, request the police report to see what is up.

flmomma08's picture

Ugh that's true! We have a mechanic in the family so he is going to look at it and see what he thinks but I am hoping it is nothing major.

Cbarton12's picture

You'll need to just let your insurance know that you gave her permission to use your vehicle. 

Depending on your state, if your friend was at fault, your insurance may file a claim on her insurance as well in which case her insurance and your insurance will pay 50/50 for the damages to the other party. 

flmomma08's picture

She doesn't have her own insurance so that complicates things a little more. Ugh I am just kicking myself for letting her take the car!

Harry's picture

Has no fault.  Car behind that hit car in front of them is at fault.  Should be in control of there car. Even if car in front went sideways down the road car in back should have enough space to stop 

flmomma08's picture

That was my question, why weren't you or the other car able to stop. It's only a 25 mph area. The car didn't hit the car in front of them though, the car in front turned out in front of my friend and then my friend and the vehicle that was behind the one that turned collided. This is the story I was told. I'm not sure if there is more to it or not. It's not making much sense to me seeing as though it's a 25 mph zone. I guess the rain could have been a factor.

Thumper's picture

Why did you allow your friend to drive your car when SHE didnt have car insurance in her name?

Why doesnt she have car insuarnce?



flmomma08's picture

We ordered food and her car was blocked in by another car so she took mine. It's only 5 minutes up the road. I don't have the slightest idea who has or doesn't have car insurance in their own name, it's not something I ever discussed with anyone and didn't even think about it honestly.

Her car and the insurance is in her husband's name.

HowLongIsForever's picture

She's probably still a named driver on his policy (or she should be) so I would make that request to her and/or her husband for the insurance company at the least.

Your company can work with theirs to identify the policy (if she's named like she should be) by her driver's license number.  Which should be available to your company by way of the police report.

flmomma08's picture

Hmm I was under the impression she wasn't on the policy but I will definitely find out for sure. Thanks for the suggestion!

shamds's picture

you don’t have to lodge an insurance claim and can say that someone else drove your car and the third party insurer has to deal with them. They can’t even make you pay. You just forward your friends details onto third party to deal with

you don’t even need to lodge a claim with your insurer and your friend has no authority to lodge one on your insurance policy. Is your friend paying for your damages out of their own pocket?

flmomma08's picture

So the other driver filed a claim with her insurance company and that is how my company got the info. When my insurance company called, I gave them my friend's info and they called and spoke to her and they told me they would call me back when they determine who was at fault. So they made it sound like if the friend was at fault that I would be responsible.

Would I just tell the insurance company to take it up with her? She told me she was going to pay to have my car fixed but if they determine she was at fault then she will be responsible for the other car too and I have no clue how much damage that car has.

Cbarton12's picture

Um this is incorrect information. OP has a contract with her insurance company. And that policy will indicate they have a duty to pay for damages that an insured person is liable. An insured person by definition per the policy will more like include not only the person who is insured, but a person that was given permission.  

Even if OP were to ask her insurance to deny coverage to the third party and they were to some reason agree (unlikely because then the insurance company could be sued). OP could still be sued for negligent entrustment.