Auto Insurance Claims: Hit & run, insurance fraud, honest conversation

Question
The car is registered under my name; however, my husband is the one who drive the car. I have received a letter stating that I was a hit and run. THe information on the letter contain only the date, my licensed plate and the hit & run location. However, according to my husband, he did not hit anyone, any car, or anything. What should i do? What if he did and what if he did not?

Answer
You need to report the claim to your insurance company immediately and tell them the truth.  They will investigate and defend you.  If they believe your husband did this, they will pay the claim.  As long as he had your permission to use the car, and he was not specifically excluded on your policy, they will provide coverage.

Before you call your ins co, have a very honest conversation with your husband.  Is there any unexplained damage on the car?  Where was the car on the date of the loss?  

Explain to him that lying about this is a felony - insurance fraud.  Also, if the insurance company determines he or you are lying about this to them, they can disclaim all coverage to you and him.  You do not want this, as you will then be sued personally by the other insurance company.

The key thing is he needs to tell the truth, whatever that may be.