Auto Insurance Claims: insurance company procedures, payment arrangement, vehicle owner

Question
This is the scenario. I currently have my learner's permit, but no license. I own a car - gifted to me recently by my sister. I could not get car insurance because I dont have a license. While driving my car, I hit another vehicle. It was minor, no injuries. No police report was taken. My sister previously owned the vehicle. The insurance is still under her name, although ownership has changed. I am an excluded driver under her policy. Here is my question:

What action can I expect from the other driver's insurance company seeing as I am uninsured? Do they typically sue or send to collections? I am only 20 and have no assets.

I will be grateful for any advice you can give.

Susan - in CA  

Answer
Hi Susan,

Your sisters insurance will not pay any of the claim. You will be personally responsible for the cost of the repairs and providing a rental car while the vehicle is in the body shop being repaired.  If as you say the damage is minor and if you can come up with the money, you should call the other vehicle owner and offer to pay for the damage and rental car yourself. If you do not have the money and their insurance company paysd the claim, they will contact you to make payment arrangements.  If you do not live up to any payment arrangement you make, they will sue you to get a judgement against you.

It is much easier to be pro-active. Contact them and show that you are sincere. Make an arrangement and stick to it.

I hope this helps
Richard Hixenbaugh