Auto Insurance Claims: DUI Suspended license, insurance comapny, dads name

Question
My friend recently bought a car in his Dads name, totaled it in an accident driving DUI on a suspended license.  Will the insurance company pay the loan off?  He had the car 2 weeks and three days.  The insurance is in his Dad's name as well.

Answer
Hi Jo,

If the insurance company pays the claim they will pay the fair market value of the car. They are not responsible for paying the loan if the loan is more than the fair market value.

In many states the insurance comapny may deny the claim if the accident was the result of DUI. Your friend's father will need to read his policy to see if there is an exclusion for DUI.

I hope this helps
Richard Hixenbaugh