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 Posted: Thu Nov 12, 2009 7:42 pm Post subject: A family member rear ended someone in my car. What should I |
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I loaned my fully insured, 1 yr old car to a family member for the day. He rear ended someone on freeway. He carries his own auto liability insurance and gave that to the person he hit. I am considering paying out of pocket to repair my car. Am I obligated to report this accident to my insurance company since my uncle carries his own insurance and I was not driving the vehicle? My main issue is that I loaned another car (much older) to my sister approx 1 month ago and someone ran into the back of her and totaled the car. Now this. Will it cause my insurance premium to increase? I do not have any accidents or moving violations on my driving record.
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| Posted: Thu Nov 12, 2009 9:17 pm Post subject: |
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You need (required) to report it. In most states, the insurance follows the car. So in this case, your family members insurance wouldn't initially respond to the claim....your insurance would.
As far as rates, I would think they could go up. It really depends.
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Dasfuk
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| Posted: Thu Nov 12, 2009 11:11 pm Post subject: |
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The insurance was obtained on the vehicle. Since you gave your family member permission to drive the vehicle, they are considered an insured under your policy and will obtain liability coverage from your policy. The adjuster for your family member under his/her policy will see that the vehicle is not listed, ask who the owner is and then refer whomever to your carrier where the vehicle is insured.
Your rates could increase... you've now had 2 at fault accidents under your policy. It does not matter that you were not driving, your assume responsibility for the use of the vehicle when you loan it out and in that you loan your vehicles out to other people means your carrier is accepting the same, larger, risk. |
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tcope
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| Posted: Sat Nov 14, 2009 1:17 pm Post subject: |
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Oh my gosh! Get this reported to your carrier NOW...To fail to do so, "could" result in them denying the HUGE injury claim these people may present (in about three months by way of attorney rep letter  )
Will your rates go up? most likely...sounds to me like you should really reconsider loaning your vehicles to relatives.. 
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Lori
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