Auto Insurance Claims: permissive use, state insurance commissioners, auto insurance policies

Question
    Last month I was stopped in traffic when a large dodge Ram pick-up truck rear-ended me with such force that 3 other cars recieved damage.
    I however was not driving my car, I was in the passenger seat and my boyfriend was at the wheel. Because of this my insurance company is declining to help. I find this incredibl;y unjust, I had full coverage and still I recieve nothing! As far as the Dodge Ram goes it turns out to be a rental from Enterprise and they claim that to have a limit of $5,000 which is to be dstributed to all the vehicles involved.
    I don't understand how my insurance company can deny any responsibility for the damages, and I don't understand how I can just lose a $12,000 car. Isn't that what insurance is for? To cover costs? How can Enterprise put a 2 ton truck on the road with only $5,000 for collision? I have medical bills, I have a tow bill, storage bill, and also a rental bill. This accident was not my fault and I am out a lot of money, which nobody is willing to compensate. What can I do?

Answer
Hi Jennifer,

Assuming you have collision coverage on your policy and if your boyfriend lives with you and was not listed on your policy as a driver, then that is why they denied coverage. All auto insurance policies require that alldriver in the household be listed on the policy. If your boyfriend does not live with you then they can not deny coverage. Again, assuming that you have collision coverage.

State law dictates how much coverage is required. So if the rental car coverage is only $5000.00 it is likely because that is all that your state law requires. That is why it is important to understand what coverage to buy. You should have Uninsured/Underinsured Mototist Coverage. That way these type of things would not effect you.

If you have collision coverage and your boyfriend does not live with you and Geico is still denying your claim, you should file a formal complaint with your state insurance commissioners office. They will conduct an investigation and find out what is going on. You can also file a law suit directly against the at-fault driver for all of the costs associated with the damage to your vehicle that were not paid by the rental car company.

I hope this helps
Richard Hixenbaugh