Auto Insurance Claims: auto claims question, underage drivers, insurance contract

Question
Hi i had let my dad borrow my car and he got in an accident, but was not at fault. I picked up the police report and found out the driver who caused the accident was given 2 citations, careless driving and no licence. It was a minor under 18 yrs. I only had liabilty insurance, so i made a claim under the owners insurance, who i believe was the mom of this person. I then recieved a call back from the person who was in charge of this claim telling me they didnt know if they could pay my car to be fixed cuz this person who caused the accident is not on this persons insurance. I got really upset and told him it wasnt my fault and that since the car involved in the accident had insurance it is there responsibilty to pay for the damage they caused to my car. Is it true can this insurance company refuse to pay for that reason. Please help, what can i do next?

Answer
Hi Melissa,

Each state has different laws and regulations. Also each insurance company within a state may have differing methods of handling this type of situation. However, I will try to give you the basics.

With many insurance companies, it is a requirement that everyone of driving age in the household, whether licensed or not, be listed on the policy. Some companies will allow a person to be specifically excluded from coverage. This is often done for underage drivers or those with a bad driving record.

So if this kid lives with his mother and was not on the policy, it is possible the insurance company could deny coverage. However, in most cases the insurance conpany would extend coverage for the damage to your car but not pay for the damage to the mothers car even if she had collision coverage for the car itself.

I know all of this may sound confusing. Even if the insurance company can and does deny coverage, that does not mean that the kid and his mother are not responsible for your damage. It just means that they violated the terms of their insurance contract and so the insurance company will not protect them. In that case you would likely need to demand payment directly from the mother or you may end up having to file a law suit against the son & the mother.

You should just keep contacting the insurance company demanding that they provide coverage. If they stand on their denial, they must provide that to you in writing with the specific reason for the denial. If you feel thay are taking too long or are not treating you fairly, you can file a complaint with your state insurance commissioners office.

I hope this helps
Richard Hixenbaugh