Auto Insurance Claims: car accient, report insurance fraud, false police report

Question
my cousin who lives with me, wrecked my car.  her license is suspended, so she is "excluded" from my policy.  if i claim the accident, will the repairs be covered? and will i get in trouble through the state or will my insurance go up or be cancelled by letting her drive my car knowing her license status?

Answer
Hy Lynn,

I am not an attorney, nor can I give legal advice.
With that said, I will answer your question based on my experience  dealing with insurance claims for over 20 years.

First, I would be concerned about the property damage or injury done by your cousin crashing your car.

Some people commit fraud in situations like this adding insult to injury. What they do is report the car stolen. Once the car is examined and determined not stolen, you end up in an even worse trick bag with felony filing a false police report, insurance fraud and possibly later, perjury for lying under oath.
Never do this!!!! I can guaranty it will come back and bite you.




If you turn it into the insurance company knowing full well that she was unlicensed and a named excluded insured, not only will they not cover, but you get a claim against you and there is a good chance you will have a real hard time getting insurance elsewhere or the rates will be ridiculous.

You also by letting her drive put your insurance company in an un-needed liability position. They insured you with the excluding of your cousin.


It also may be required for you to be insured that she is not allowed to live with you.

This happened to my dad when my brother lost his license. They dropped my dad the day they found out my brother was in the same house.

Is there a police report of the accident showing your cousin was driving?

You may want to get legal advice to protect yourself here because you are responsible for whatever she did as for causing injury or property damage. After all, it was your car and you are responsible.

I personally would be very angry here because she has exposed you to liability and now the car is damaged!!!

You have to share part of the blame though because you let her drive. There is a reason she was suspended!!

I truly wish you good luck!

Rob