Auto Insurance Claims: Friend drove my car and crashed it, slippery roads, letter of denial

Question
Hi Richard,
I let my friend drive my car back in January 2008 and he crashed it, claiming
it was because of the wet and slippery roads. He told me he was going to pay
out of pocket but I've been waiting patiently for him to find the money to do
it. It's now October 2008 and I finally convinced him to go through insurance.
The only problem is that he doesn't have insurance now but DID have it back
in January. He's working with an insurance person that says as long as he had
insurance then, it should be fine. Is that true? I also said that I don't want this
accident to affect my perfect driving record, but will it? And will my insurance
go up or penalize me in any way? He said that I would have to fill out a letter
of denial because I said I didn't want to pay for anything, which I shouldn't.
What's a "letter of denial" and what does it do in this situation?

Answer
Hi Jenny,

Auto insurance follows the vehicle not the driver. So in this case it would be your insurance that you would have to file a claim on. His insurance, although valid at the time of the accident, will not pay because he was not driving his own car. Anytime you lend someone your car, they are driving on your insurance not theirs. Your insurance comapny will pay for the cost to repair your car less your deductible. Perhaps you can get your friend to at least reimburse you for the deductible.

I hope this helps
Richard Hixenbaugh