Auto Insurance Claims: what kind of claim?, state insurance commissioner, snow blower

Question
My 14 year old son, who has not started drivers' education and without permission decided
to try to move my stick shift vehicle in the garage.  He smashed into a snowblower,
damaging the front bumper of my car as well as the snowblower and damaging the drywall in
the garage.  If I call the insurance company what should I expect?  Is this an at fault
collision claim or does it fall into other than collision category?  We live in Michigan.


Answer
Hi Kathleen,

Don’t be too hard on him: I made a couple of wrecks when I was young.  Here are some choices in coverage and exposure for you to consider.  

First, figure out your damages to see whether or not you want to fix things on your own or involve your insurance company.  Don’t forget that you will have deductible to pay on any comprehensive auto or home owners claims.

Next, figure out if only part of the damage need be reported.  For example, if the bumper is something you can live with, then use your homeowner’s or renter’s insurance to cover both the snow blower and the drywall.  

If you are a renter, you cannot use your auto liability to cover that drywall damage inasmuch as your son was not a permissive driver.  

As for your vehicle, you would make a claim on your comprehensive versus your auto insurance, and the same versus your home owners or renter’s insurance as to the snow blower and the drywall.  Again, if you are a renter, then your renter’s liability portion will cover the drywall damage.

One cannot predict about rate increases inasmuch as there are many variables above.  But you can expect that it will go down as a reportable accident on the homeowner’s or renter’s insurance.  Since the comprehensive claim was caused by a family member, even if not a permissive driver, I am inclined to call it an at-fault accident.  But the best place to check on that is with your state insurance commissioner http://www.settlementcentral.com/links.php  She has made rules as to what can be called an at-fault accident.  These usually include a monetary minimum, .such as $750 in damage in order to qualify.  So even if it were at-fault, the value of the repairs might not raise to the level whereby they can increase your rates.  

Best Wishes,


Dr. Settlement, J.D. (Juris Doctor)
Http://www.SettlementCentral.Com