Auto Insurance Claims: Double insurance -- what happens, coordination of benefits, leasing company

Question
I drive a Toyota that is leased by my sister actually (we do not live together although we live in the same city). I have carried insurance with Progressive on the Toyota since I started driving it. About six months ago, my sister's leasing company informed her that she needed her own insurance policy on the car (even though she and the leasing company were named on my Progressive policy). Progressive did not understand why this was necessary, but the leasing company was threatening to repo the car, so my sister took out a second policy through Esurance. I did not cancel the Progressive policy. I was involved in an accident about 2 weeks ago. I filed a claim with Progressive and my sister filed with Esurance. Progressive is threatening to deny coverage and I do not know what Esurance's position is on this. I am getting concerned that neither company will cover the damage and I'll essentially get nothing (the repairs are approx $4000) b/c the car is overinsured. Can you let me know which company should be covering this and what I can do to make sure I am compensated? thank you

Answer
Hi Kim,

The claim will be paid. Auto insurance policys generally contain a "coordination of benefits provision". This means when there is more than one insurance comapany they will generally split the claim. You can not collect twice for the same claim so each will pay half. Once the claim is paid one of the insurance companys will likely cancel their policy.

I hope this helps
Richard Hixenbaugh