Auto Insurance Claims: Company vehicle, satisfactory agreement, company insurance

Question
My friend got in a car accident while driving his company vehicle for personal use even though he was told by his boss this was not permissible. Now his boss wants him to pay for the costs of the accident and the difference in the boss's increased insurance rates. Is this right? We live in Michigan, not sure if that matters.
Thanks,
Krista

Answer
Hi Krista,
I think we can agree that your friend was in the wrong to use the car for personal use after being told it was not permissible.

If the accident is going to cause an increase in the company insurance, that indicates that the boss has already reported the accident to them and collected for the damage.

It's certainly not right that the boss collect twice for the damage.

Your friend should offer to pay the deductible and the increased cost of insurance over the next three years as a penalty for his bad judgement in using the car for personal use.

Hopefully, your friend can come to a satisfactory agreement with the boss.  Otherwise, this could possibly be grounds for job termination.

I hope you find this information helpful.
Your feedback by rating my answer will be appreciated.

Sincerely,
Bennie
San Francisco Bay Area