Expert: Anne - 1/29/2009

Question
Is there different kinds of full-coverage insurance. My brother had full-coverage and he lend me the car to go to the store. I got in an accident and it was my fault. Now the insurance said they can't pay for his car since i was not in the policy. But can only pay the other vehicle. It sounds like he was paying for liability.

Answer
Hello Martha,

No full coverage means liability + collision + comprehensive. Usually, (90%) of the time, auto policies have something called the “omnibus clause.” This clause gives coverage to anyone driving the vehicle as long as they are permissive driver and they are not specifically excluded from the policy. Usually, you have to be specifically excluded from driving that car before the insurance company can decline coverage.

It is interesting that they are paying for you liability but not the damages to your car. Usually either you have full coverage in all coverage’s, and if the liability coverage applies to you, so does the collision (and viceversa). Can it happen? Yeah, it could, the policy can have different language in both sections, but that is unlikely.

It sounds more like you have it right. He probably only had liability. Ask to see the policy and the declarations page to determine what coverages he had. If he did not have collision, it is possible that the policy of your car covers this (if you carry collision).

I hope this helps.

Anne
http://www.auto-insurance-claim-advice.com/