Auto Insurance Claims: insured car, uninsured driver, insured car, uninsured driver

Question
Dear Anne,
I have been scouring the internet for some help and I still don't understand the situation I am in and I hope you can help. My brother lives in CT and he loaned my 18 yr. old son his car one weekend. My son is licensed in NY but he is not on my insurance policy as he rarely drives. Unfortunately he was involved in a 3 car accident on a snowy night. The first car spun sideways, a second car hit him and my son was driving the third car which then hit the second car. The first car sped away and no one got his information. The police report said my son was at fault because he was following too closely. I don't understand that as they did not see the accident. My brother called his insurance agent and reported the accident. A few weeks later he receives a letter from a collection agency saying he owes $5,000 because the second driver had his car fixed and paid by his own insurance and my brother's insurance refused to pay. My brother called his agent who acted very strange. He told my brother that as my son was uninsured this was a huge problem and he needed to get an attorney. He said my son could lose his license, my insurance rates would go up and my brother's rates would go up. He then said he was being threatened and he couldn't say anymore. As I insured my son in NY after the accident he suggested we send that to the insurance agency and maybe they wouldn't check the date. This man has my brother and I totally bewildered and frightened. We don't know where to turn because we are afraid to contact the company directly as this agent has scared us with the consequences of doing so. But isn't that insurance fraud to submit a declarations page with my son on it even though he did not really have insurance at the time of the accident? Can you help me understand what is going on here? I don't know where to turn. Thank you so much for any help you can give me.
June

Answer
Hello June,

I am sorry to hear all of this.

Let me start by saying that, unfortunately, insurance agents are NOT very good about handling claims. This is NOT their job and they should do it.

You see, insurance agents make money by selling policies (do their job), however, they make more money by keeping a low loss ratio. In other words, they make money by selling policies to people who do not make claims. Agents have a vested interested in discouraging you from making a claim against the insurance company.

With that being said, an agent has a duty to report the claim! If you file and discuss this type of claim with an agent, they have a duty to talk to the insurance company. Why? Because you have a duty (you and your brother in each policy) to report losses. See more at:

http://www.auto-insurance-claim-advice.com/Duty-to-Report-Losses.html

If you do not report, the insurance company could deny your claim. If your agent fails to file the claim, it will create a very difficult situation.

If he is YOUR or YOUR brother’s agent, the insurance company will not have a duty to cover (it happens with independent agents), if however he is an insurance company agent (he works for a specific insurance company or has actual or apparent agency power), then you have already report the claim.

In any event, you want to report this so you can cover all your basis. (Report it to insurance companies - yours and your brothers).

Both insurance companies will have to do an investigation regarding coverage. Your insurance company might very well cover him, unless he is specifically excluded from the policy. Never misrepresent or lie to an insurance company (or anyone for that matter). They can exclude you for that and bigger problems might arise.

Let them decide how coverage applies. An insurance adjuster will be able to look at the policy and see if coverage can be granted, not an agent.

Regarding fault: Again, an insurance company (on your side) must determine fault and negotiate and settle with the other insurance company (the one coming after you). Trying to do this on your own will only cause more problems.

If you are worry about your rates, you need to consider getting a quote now (while no claim has been filed against you) and determine what your rates are. You can get a quote again after the claim is settled and see what was the real impact on your rates. To get a quote, visit:

http://www.auto-accident-blog.com/go/auto-insurance-quotes.php

I hope this helps, do consider (or tell your brother) to get another agent!

Good Luck
Anne
http://www.auto-insurance-claim-advice.com