Can my Insurance Cover the Damage caused by an Unlisted Driver?

Jul 11, 2016

  1. Loh
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    Loh New Member

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    Hello all,

    My friend got into a car accident whiling driving my car. My insurance company thinks that my friend needs to take the responsibility for the car accident and considers him a excluded driver.

    Will my liability, comprehensive and collision insurance help me pay for the damage of my car and for the damage of another car involved in the car accident?

    Thank you so much.

    :)
     
    Loh, Jul 11, 2016
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  2. Josh
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    Josh Retired Agent, Current List Broker

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    If your friend lives with you and has regular access to the vehicle, the insurance company probably wins this one.
     
    Josh, Jul 11, 2016
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  3. djs
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    djs Super Moderator Moderator

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    A few general guidelines:
    - Insurance claims go to the vehicle insurance first.
    - If no coverage (or insufficient), then it goes to the drivers insurance.

    There isn't enough information to answer your question though. Typically, someone using your car is a 'permissive user' and would be covered by your insurance, but there are many exceptions to this. The biggest one that Josh pointed out is if they live at the same address, or if they drive the car 'regularly', then your coverage may not extend coverage to them as a covered driver.

    In some cases, if they have their own car and their own insurance, even if they live at the same address, then coverage will be extended anyway, but in this case, it may not matter since coverage would fall back to the drivers coverage anyway. Again though, the drivers coverage may not cover it if at the same address.

    The real question comes down to why was he driving your car, how often does he drive it and does he live at the same address? Once that is established, you can get better answers.

    Dan
     
    djs, Jul 12, 2016
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  4. Loh
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    Loh New Member

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    Hello Josh,

    Thank you so much for your reply! My friend will stay with me for around 2 months. The car accident happened just during the first month of his visit. Thanks a lot.
     
    Loh, Jul 12, 2016
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  5. Loh
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    Loh New Member

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    Hello Dan,

    Thank you so much for your reply! My friend is visiting me currently. The car accident happened on his way to a supermarket. He drives my car around once a week since he moved into my apartment around one month ago. My insurance adjustor thinks he is a regular user of my car.

    Also, my adjustor thinks my car is a total loss. I just got my car last year.

    Thank you so much! I look forward to your reply.

    Loh
     
    Loh, Jul 12, 2016
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  6. Josh
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    Josh Retired Agent, Current List Broker

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    He lives with you and drives it once a week? Yes, he should have been on the policy and I would be very surprised if they paid that claim.
     
    Josh, Jul 12, 2016
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  7. Loh
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    Loh New Member

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    My friend is just visiting me and he will not stay with me for more than three months. Thanks.
     
    Loh, Jul 12, 2016
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  8. bobson
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    bobson Guru

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    Where is the exclusion?
     
    bobson, Jul 12, 2016
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  9. Josh
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    Josh Retired Agent, Current List Broker

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    Exactly what the title says, unlisted driver. If someone moves in and drivers your car, they should be in your insurance if they have regular access to your vehicle, especially if they do not have their own and it's insured.
     
    Josh, Jul 12, 2016
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  10. InsCommentary
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    InsCommentary Guru

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    What bobson said. A claim denial must:
    (1) Be in writing,
    (2) Cite the policy language on which the denial is based, and
    (3) Explain WHY the policy language applies to the loss to deny coverage.
    This requirement is codified in some states and expressed in case law in others.

    Your question cannot be answered without knowing what policy you have and what it says. The "ISO standard" personal auto policy (PAP) covers permissive users as insureds. There is no exclusion for "unlisted drivers." For damage to your auto, the ISO PAP waives subrogation by the insurer against the permissive user. None of this may be true for a non-ISO PAP.
     
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