Can Car Insurance Company Make Someone Pay....

[VolAgent]

But I'll ask again... would a permissive user not be an insured under the liability portion of that same policy? Answer is yes. As such, that policy would need to provide him liability coverage (under that same policy). This would mean that the same carrier would need to defend the driver against... themselves.

So, no they are not entitled to subrogation against the driver of their own insured vehicle.

So reading the same policy. As an exclusion in the liability section:

damage to or destruction of property an insured person owns, is in charge of, or rents. An auto operated by an insured person is considered to be property in charge of an insured person. However, a private residence or a garage rented by that person is covered.

So, it appears the damage was covered under collision, but liability does not extend to the driver as far as the vehicle is considered. The driver would be otherwise covered as a permissive driver. That would leave the driver open to subrogation.

Although, you would think the blood from the turnip defense would kick in. Or even, "Chasing down the family friend of our insured over a few thousand is a good way to lose our insured" would start to take over.

 

[djs]

A permissive user is covered under the collision part of most policies. It is NOT a liability claim.

You cannot be held liable for being covered under the collision part of the policy.

This was a 2 car accident. It doesn't make any sense otherwise.

Dan

 

[INSUREGEEK]

But I'll ask again... would a permissive user not be an insured under the liability portion of that same policy? Answer is yes. As such, that policy would need to provide him liability coverage (under that same policy). This would mean that the same carrier would need to defend the driver against... themselves.

So, no they are not entitled to subrogation against the driver of their own insured vehicle.

OK:

THIS IS NOT A LIABILITY CLAIM!

This is 1st person/Collision coverage claim as best we can tell, but many of us are now doubting. There must be financial interest in the vehicle to benefit from a Comp/Collision claim. The driver of this car has NO financial interest. In fact, the owner/lienholder are 100% within their rights legally and under most insurance contracts to pursue the party that damaged their property.

Now, had there been a liability claim - yes, the insurance will protect and defend the driver....because not doing that seriously jeopardizes the insurance company's position in a 3rd party lawsuit.

 

[djs]

I think you missed the intent of the question.....

The liability to the son to pay for damages arose out of what started as a collision claim. Carriers usually subrogate collision payments against the responsible party, and the responsible parties insurance pays for the damage under the property damage liability part of the insurance. Happens ever day.

Now, what I have NEVER heard of is an insurance company pursuing subrogation against what they must have admitted was an insured driver since they paid the collision claim.

This is only a question if you believe this was a single car accident. This was a 2 car accident. Only way things make sense at all.

Dan

 

[INSUREGEEK]

I get what everyone is saying, but I still disagree whether there were 2 cars or only 1 car.

The collision piece gets subro'd to the driver's policy as a PD liability claim. If that driver has no insurance, he'd better get out his checkbook.

I think in most cases, as an earlier poster said, this happens out ofour sightline and we don't even realize it's happened.

I really have seen it. My policy paid $700 when my son had an accident while driving a friend's car. Their policy paid for the damage to the other car, a liability issue, where my son is an insured. They came after me for the damage to the friend's car....what was paid by their policy as a collision claim. My policy paid it as a PD liability. I would have written them a check if I'd had that option, but it was too late.

Auto insurance is always car first, driver second. Policy language differs greatly sometimes, and it's hard to give a scenario specific response to the OP without all of the info.

I have enjoyed this discussion and really wish the OP had come back with the rest of the story, lol.

Have a great weekend everyone!

 

[phil23]

I agree.. Toddc is right.

 

[INSUREGEEK]

Had 2 of these this week:

Case 1: Long time customer of the shop let her BFF drive her band new Jetta. BFF wrecks the brand new Jetta by blowing through a red light and getting t-boned. Totals 2 cars. BFF's insurance takes care of the entire claim from the beginning. It usually happens that the car owner's insurance pays, then subros the driver, but the lizard took this one from the start, much to my shock & awe.

Case 2: An older Blazer gets rear ended by driver using a borrowed car. SF insured the car that did the hitting, Allstate insured the driver of the borrowed car. Want to guess who paid out on the totaled Blazer? Allstate.

Maybe it's where I live, but I see it frequently. Barring a close familial relationship or some other legal reason to NOT pursue the driver, it does happen.