QuestionHi Bennie,
My mother is the legal owner of a car that I drive. The car would be in my name, but I could not get a loan for the car, so she got the loan and I make the payments to her. I let my boyfriend drive the car to work sometimes. He is not on the insurance policy (my mother and I are), but I was told that he can drive it so long as I give permission and he will still be covered in the event of an accident. About two years ago, he rear-ended an SUV and though everyone said they were fine, and we and they got their car fixed through my insurance, the man he hit is now alleging he is injured and his lawyer sent my insurance company a demand letter wanting the limit of $50,000. I am trying to find out what is going on by contacting my insurance company. But yesterday my boyfriend was served with a notice to appear in court and is basically being sued by the other guy. My insurance said they would notify me when the case was resolved, but I haven't gotten notification, and now my boyfriend is getting sued. Why is this guy suing us and not the insurance company? My main worry is that this guy will try to sue my mom since she is the legal owner of the car once he finds out that my boyfriend has absolutely no assets for him to take. Can he legally sue my mom and can he win? I am going crazy and so stressed about this. Thanks.
AnswerHi Marie,
First of all, your boyfriend needs to make a couple of copies of the summons and complaint and then immediately get the original papers that he was served with to your mothers insurance company.
This should be done in person if possible because the insurance company will have several questions to ask of him. If it can't be done in person, he should immediately call the insurance company, answer their questions and send all the legal documents to them, probably by overnight mail.
It is always customary to file any lawsuit against the driver, not the insurance company. Since your mothers insurance paid the damages for the other car, then it appears that they are willing to defend and pay the injury claim.
They have been aware of the injury claim since shortly after the accident and have been working with the injured party's attorney to settle the claim. They have evaluated the claim and placed a value of less than $50,000 and tried to settle for that amount. The attorney is not satisfied with their offer and has filed a lawsuit for $50,000.
You mentioned that the accident was almost two years ago. Every state has a statue of limitations in which a claim must be settled or a lawsuit filed to extend the statue time limits or forever lose any right of collection. About 23 states have a two year time limit.
It's possible that this suit was filed to protect the time limits and there is a strong chance that it will be settled without going to trial.
Since your Mother is the owner of the car, she is responsible for the actions of the car, but will be protected by her insurance policy providing the accident falls within the legal terms of the policy.
I would like to take a moment to explain your rights to give someone else permission to drive the car.
If you reside with your mother and you give someone else outside the household permission to drive the car, that is acceptable.
If you and your boyfriend reside with your mother, he MUST be named as a driver on the policy in order to have coverage.
If you and your boyfriend reside at an address different from your mothers, the insurance company MUST be informed of the proper garaging address and your boyfriend MUST be added as a driver on the policy in order to have coverage. If any of these conditions apply, your mothers insurance could deny the claim and she would be responsible for the injury settlement.
If you resided with your mother and your boyfriend resided elsewhere at the time of the accident, then I see no reason why the claim would not be covered.
If the situation has changed since that time, you need to make the necessary corrections of garaging address and add your boyfriend to the policy or any future claims will be denied and your mother will be responsible as the owner.
I hope this information is of help. Please write again if you feel that I can be of more assistance.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area
