Auto Insurance Claims: want know what to do, underinsured motorist coverage, bankruptcy court

Question
My son die in a car accident. My mother was driving her boyfriends car which he gave her the keys. He also was in the car when the accident happen!Mother was in the wrong, I feel like the boyfriend share some of the blame also. He's also trying to collect and the Ins. Company don't know that the boyfriend gave my moms the keys and permission to drive the car. My question is if I told the ins. company that the boyfriend gave my moms the keys will I still be entitle to collect from the boyfriend ins, since my son was a passenger in his car? The boyfriend thinks he's entitle to collect also when fact he only has a limited primary policy 15/30 and underinsured with limites also. What should I do?

Answer
Dear Kaisha,

I am sorry to hear of this tragedy.  No amount of money can replace your son.

As for your question, there are three sources of insurance to cover the loss of your son, and two sources of insurance to cover the boyfriend.

First, there is the insurance on the car.  That insurance is ACTIVE ONLY IF THE DRIVER HAD PERMISSION TO DRIVE.  So, the fact that the boyfriend did give her the keys works in his favor AND in your favor inasmuch as that is what is needed in order to make that policy active.  Also, the fact that he was a passenger implies that he had given his permission to drive.  

Next, you both have recourse under your mother's insurance policy.  Both of you can claim under the liability part of that policy.

Finally, you do have your own policy that will cover the loss of your son under your Underinsured Motorist Coverage (UIM).  Thus, your own policy will be used to pay the balance of the claim to you.

If the policies are insufficient to cover the losses, can you sue anyone above and beyond the policy?  Yes, you could sue your mother.  Does she have any assets above what a bankruptcy court would exempt?  

No, you cannot sue the boyfriend, UNLESS he was negligent in loaning the car to your mother.  In other words, if he knew or should have known that your mother was not then and there competent to operate the vehicle, then you can sue him personally, for assets above those exempt by a bankruptcy.

Best wishes in dealing with this loss.

Dr. Settlement, J.D. (Juris Doctor)
www.SettlementCentral.Com