Auto Insurance Claims: Same company subrogation, wrought iron fence, policy cancellation

Question
My daughter allowed her nanny to use her car (not regular use but to run an errand for my daughter).  The nanny had a weather-related accident and wiped out a wrought-iron fence and did cosmetic damage to the car.  Both daughter and nanny are insured by GEICO in Virginia.  I understand that the car policy pays but will the nanny or my daughter be held accountable for raised rates or policy cancellation?  There is no collision insurance, does my daughter have recourse for the body damage thru the insurance company or through the courts?

Answer
Hi Walt,

Since there is no collision coverage on the vehicle, there will be no payment for the damage from the insurance company. As you said they will pay for the fence. This will be considered an at-fault event on the policy. However, each company has its own rules on what effect, if any, that will have on the premiums.

If your daughter wishes to be reimbursed for the damage she would need to present the nanny with the repair bill. Then they can either negotiate a reasonable settlement (perhaps trading out nanny service until the bill is paid) or your daughter could bring a law suit. The problem with a law suit is that although you may get a judgement against the nanny, collecting the money may prove to be much more difficult.

I hope this helps
Richard Hixenbaugh