Auto Insurance Claims/Excluded Driver

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Expert: - 12/27/2008


Question
My wife was hit by a vehicle that was hit by a 17 year old female that was "Excluded" for the parents insurance policy (Loya Casualty--TX).  They are not paying for anything!  Will my insurance company sue and should I sue since on my policy it does not cover rental car? Fortunately no one in my family was injured but I am angry that this parent would let their daughter drive to high school with their car!!!
The police officer on scene did not write up a report but we have his name.  The girl had the insurance card as if she did have insurance.  Police did not arrest or cite on scene.

Answer
Russell,

Sorry about your bad fortune.  If you have Uninsured Motorist coverage on your policy, your insurer will handle the claim as if they insured the uninsured driver.  Normally, this does provide rental coverage.  But I'm not positive in your state.  Ask your adjuster and read your policy.

I would call the officer to let him know what happened and he may charge the driver for operating without insurance.  This may make it easier for you to collect later.

As for suing, your insurer will subrogate against the driver and vehicle owner (parents)for any amount they pay out.  This may or may not involve a lawsuit.  You also have the right to do the same.  Your insurer can help you  with collecting some of your out of pocket expense, so be sure to ask.

The other insurance company is correct to deny the claim if the girl was excluded on that policy.  Insurance companies do this all the time if they do not think  someone is a safe enough risk to insure.  So either the parents were irresponisble letting her drive without insurance, or she took the car without their knowledge.  

Auto Insurance Claims

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I am currently an Auto Claims Manager for a large insurance company. I have 18 years experience in the industry, having worked as a Claims Adjuster, Injury Settlement Negotiator, Claims Manager, SIU/Fraud Investigator, and Compliance Officer......I can answer questions related to any aspect of Automobile insurance claims and coverages. I can provide an inside look at how insurers operate. I always treat my customers fairly and want to help make sure you are treated fairly. However, please keep in mind that being treated fairly according to the law does not guarantee that you will get what you want. I can also answer some questions regarding Homeowner's and other types of insurance claims. I have handled all types of auto insurance claims and coverages. I am NOT an automotive repair expert but can give advice re how insurers handle complex repair issues. Please keep in mind that every state has its own set of laws pertaining to rules of the road, liability, and insurance. No one is an expert on every state. I am most familiar with laws in Maryland, DC, West Virginia, and Virginia, but will attempt to answer questions for other states. I am not an attorney an cannot provide legal advice. My advice will be my opinion based on my experience.

Experience

I am currently an Auto Claims Manager for a large insurance company. I have 18 years experience in the industry, having worked as a Claims Adjuster, Injury Settlement Negotiator, Claims Manager, SIU/Fraud Investigator, and Compliance Officer. I am not an attorney an cannot provide legal advice. My advice will be my opinion based on my experience.

Organizations
CPCU Society. Adjusters license in multiple states. International Association of Specal Investigators

Education/Credentials
I have a B.S. in Finance and have completed the AIC and CPCU designations.

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