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 Posted: Thu Oct 02, 2008 12:13 am Post subject: Who all pays? |
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| I would like to know what insurance company is liable if a grown woman driving her mothers car hits another person but the woman had her own car and car insurance (just had MOMs for the day until hers was at the garage). Does just her moms car insurance pay or is hers liable since she was driving? |
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fireyone
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| Posted: Thu Oct 02, 2008 12:36 am Post subject: |
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First, the driver is liable. In some states (a few) the owner of the vehicle can be held liable also. That is what you need to remember.
Now, insurance... if the mother gave the daughter permission to use the car, then the daughter will probably be considered an insured under the mothers policy. As the vehicle is also listed under the mothers policy, it's _probably_ going to be the primary carrier (ie the mothers policy). Most likely the drivers insurance would address any excess issues that might arise (if the mothers policy limits were not sufficient to handle the claim). |
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tcope
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| Posted: Thu Oct 02, 2008 12:44 am Post subject: |
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| Long time no see Tscope. See your around still giving good advise. That pretty much answers my question. Thanks a trillion. |
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fireyone
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| Posted: Thu Oct 02, 2008 3:39 am Post subject: |
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Hi Fireyone 
The auto laws vary from one state to another. According to some state laws, if both the driver and the owner have their own insurance policy, then both have to pay the liability claim until one of the policies gets exhausted. After that the remaining policy will take care of the rest of the claim.
| Quote: | | I would like to know what insurance company is liable if a grown woman driving her mothers car hits another person but the woman had her own car and car insurance (just had MOMs for the day until hers was at the garage). Does just her moms car insurance pay or is hers liable since she was driving? |
If your mom has auto insurance and has put your name in the policy list, you will be insured. If not, then you surely must have mom's permission to drive the car. Most standard insurance providers usually cover other drivers if they are driving someone else's car with their permission.
Hope I've been of help |
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sil
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| Posted: Thu Oct 02, 2008 4:40 am Post subject: |
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| Quote: | | The auto laws vary from one state to another. According to some state laws, if both the driver and the owner have their own insurance policy, then both have to pay the liability claim until one of the policies gets exhausted. After that the remaining policy will take care of the rest of the claim. |
While this is more or less correct, it's not the correct way of looking at the situation. State laws will dictate who is liable... not who's insurance policy does what. It's _then_ the insurance policy that reacts to that liability. Or, triggered by that liability. What goes hand in hand with that trigger is who is an insured under the policy.
The only real error I can see is how both policies react. Almost always, if not always, an auto policy will be primary if the vehicle is listed on the policy and _excess_ is if it not. This is different in that both policies do not react in the same way, instead, one reacts first until the limits are reached and then the other one takes over. |
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tcope
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| Posted: Thu Oct 02, 2008 5:32 am Post subject: |
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| Quote: | | if both the driver and the owner have their own insurance policy, then both have to pay the liability claim until one of the policies gets exhausted. |
That may not be true always…if the driver has her own policy then her insurance carrier will be primarily responsible for the damages caused to the other driver. The vehicle owner may or may not be considered as responsible for the incident. In such situations the coverage of the other driver will play the role of the supplementary coverage.
However, if the responsible driver has no coverage of her own, but was driving the car with the permission of the car owner. Then the vehicle owner's insurance may addresses the damages.
However, its true that the auto insurance laws vary widely amongst the states. Hence, it'd be best to check out with the state laws before taking the chances. |
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JeremyHolter
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| Posted: Thu Oct 02, 2008 11:34 am Post subject: |
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In the states I work in the insurance always stays with the car and is primary...period...in the example...mom's policy would pay...period....now, let's say mom only has liabity, and daughter (driver) has collision on her vehicle...mom's pays the liability but daughters will pick up the collision...only incident (in my areas) where the drivers policy would pay squat on the owners vehicle...or of course excess...
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Lori
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| Posted: Thu Oct 02, 2008 2:20 pm Post subject: |
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I will echo Lori. Insurance follows the car first, then the driver. The driver's insurance would only pay what the "car's" insurance falls short of.
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LifeIsGood
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| Posted: Thu Oct 02, 2008 2:22 pm Post subject: |
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| Quote: | | In the states I work in the insurance always stays with the car and is primary...period...in the example...mom's policy would pay...period |
Huh?
Let's be a little more clear on the situation...
Mother owns the vehicle and the vehicle is insured under the mothers policy. Daughter is driving the car with permission and also has her own insurance. The daughter causes an accident.
Lori, your saying the mothers policy addresses the situation only? I would have to say that is incorrect. The mothers policy is primary, yes. But the daughters policy states it will protect the daughter, period. As mentioned, the mothers policy will provide primary insurance but this does not negate the terms of the daughters policy... it only makes it excess. If the mothers policy only has $10k liability coverage and the claim is $20k, the daughter is then lacking $10k. So now the daughters policy would step up to the plate to protect the daughter as it states in the daughters policy (keep in mind... the _daughter_ is legally liable for the loss in every state I know of). |
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tcope
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| Posted: Thu Oct 02, 2008 11:20 pm Post subject: |
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Wow this can be really confusing. The only reason I ask is because this is what is happened to me. I was hit by the daughter who had borrowed her mothers car. She supposedly didn't live with her and is 22. I am jsut guessing she may have had her own policy but do not know this for sure.
When the atty says they sent off the info and we should hear within 45-60 days ..who did they send it off to? The insured person or the insurance company? |
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fireyone
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| Posted: Thu Oct 02, 2008 11:45 pm Post subject: |
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Probably both. I'm sure they want to find out exactly how much is available from BOTH insurance policies.
Attorneys are thorough like that. Only have the clients best interest in mind.
*watches for lightning*
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LifeIsGood
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| Posted: Fri Oct 03, 2008 1:02 am Post subject: |
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| They have never said anything to me yet about there being two insurance companies. They always act as if it is one place unless they are talking about the person theirselves. If the atty gathered all this info, doc reperts, lost wages and all the stuff that goes with it who are they sending it off to? The other ins. company or the insured? |
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fireyone
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| Posted: Fri Oct 03, 2008 1:57 am Post subject: |
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It would have been sent to the mothers carrier. If the demand is less then her limits, there is no reason to send the demand to anyone else. The mothers policy will provide coverage to the daughter for up to the mothers policy limits.
No reason to send it to the insured... the insured is not going to be paying the claim up front. |
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tcope
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| Posted: Fri Oct 03, 2008 2:02 am Post subject: |
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| Okay thanks. Now since my injuries are lifetime and say she only had minimal coverage can they tehn go after the daughters ins company if there is one? I am unsure what all is going on at this point. The last letter I got said tehy expected a response from the other person in 45-60 days. It has almost been 45 days (tomorrow). I am really ready to get off this roller coaster ride already. |
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fireyone
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| Posted: Fri Oct 03, 2008 10:35 am Post subject: |
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| Quote: | | Lori, your saying the mothers policy addresses the situation only? I would have to say that is incorrect. The mothers policy is primary, yes. But the daughters policy states it will protect the daughter, period. As mentioned, the mothers policy will provide primary insurance but this does not negate the terms of the daughters policy... it only makes it excess. If the mothers policy only has $10k liability coverage and the claim is $20k, the daughter is then lacking $10k. So now the daughters policy would step up to the plate to protect the daughter as it states in the daughters policy (keep in mind... the _daughter_ is legally liable for the loss in every state I know of). |
Yeah, that's what I said...mom's policy pays...daughters/drivers comes in as excess only.. | Quote: | | the drivers policy would pay squat on the owners vehicle...or of course excess |
I should've driven the excess point stronger i guess..but we are in agreement...mom pays all the way UNLESS she is short...then drivers policy picks up excess.
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Lori
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