Auto Insurance Claims: Auto insurance, Niece Placing Benefactor In Harms way

Question
Should I pay for the damages?
I let my niece put her car in my name, but I let her get the car insurance. She call me and told me that she got the insurance. I told ok that's good and now we have nothing to worry about, drive safe. The months later I ask to borrow the car to run to the supermarket. On the way back I got in to an accident. I call her to let her know and the that's when she told me that the insurance she got was fake. Now I have a bill of $2500 to pay for the damages. I feel like I shouldnt have to pay for it because she got fake insurance and if the insurance had been real the the insurance company would've paid it.
   I don't do stuff like that, Im not into illegal actions and she know that.
   She told me its her business and she don't have to tell me nothing. But I feel like I should know about everything going on about the car because it's in my name.
   If I would've known the insurance was fake then I would took the car out of my name right away because I'm not into that and anything can happen and I will be held responsible.
   I think she should pay for the damages.
   If the insurance was real then the insurance company would have paid.
   Should I pay or should she pay???

Answer
Felicia,

I’m sorry to hear about the loss and about the dishonesty of your niece.

Had she honored your request to get insurance, this issue wouldn’t be an issue…her dishonesty in defrauding the state to retain her driving privileges is one thing… but her placing you in a position of risk and liability is in my opinion worse, especially when you did her a favor by placing your neck on the line!

That’s the bad news…now for the good. Had she been involved in a accident and seriously hurt someone, you could have been sued and lost everything! Now you can take steps to get your name off the vehicle or ensure that she has legitimate insurance before driving the vehicle to ensure your interest (and assets) area protected. I would ground that car until she gets ample coverage...and by the way...it's every bit of your business and you are right in that you should know everything that's going on with the vehicle when it comes to insurance and any other financial exposure you have regarding it!!

Because the vehicle had no insurance and you were driving, it is likely you will be held liable for the damages. If you own your own vehicle and have property damage liability insurance, you may be able to have your insurer step in and protect you in this regard. You will need contact your insurer, explain the situation and ask for them to step in on this matter to take care of the other party’s damages.

As far as for your nieces’ vehicle’s damages…I would say she’s on her own and for her to chalk it up to a valuable lesson learned and to get coverage to protect her and you.

You too could learn from this occurrence and should take steps to ensure it doesn’t happen again... and that if it does…you’re protected!

Hope this helps in some small way…Good luck to you both!


Barrett