Expert: Ron Cercone - 3/6/2010

Question
QUESTION: I was involve in an accident last year. It resulted to damage to 2 cars amounting to $6000 for one car and $1000 for the second car. Although the my car had insurance, I wasnt included in the policy yet because my parents were planning to include me the in the next month. Now, DMV Florida suspended my license because O dont have insurance and is asking me to get a SR-22 and a release form from the other parties.
My question is what if one of the driver refuses to sign the release form, what should I do??
P.S. The driver of the other car with $6000 also didnt have insurance. Only the one with $1000 damages had insurance. And I am positive that she is the one pursuing this case.
Im getting confuse in what to do. Please help

ANSWER: First check with your department of motor vehicles for advice. Then check with an attorney. If you end up without a car, at least you will save on the gas :) Sorry for your bad luck. Dive careful.

---------- FOLLOW-UP ----------

QUESTION: The car I drove had insurance but I wasnt included in the policy during the time of the accident. But the insurance policy of the car at that time was up-to-date and all. Its just that I drove it and my name wasnt on the policy. Does this cancel out the insurance policy??  Because when DMV contacted them, the company denied the policy.

ANSWER: I'm pretty sure that all family members who are going to be driving have to be named on the policy. And rightfully so. I can't imagine an insurer not charging extra for parents with teen drivers, who as a group are the most accident prone drivers. It should not cancel the policy, just not pay that claim.

---------- FOLLOW-UP ----------

QUESTION: So, if the insurance company will not pay the damages, do I have to pay it myself??

Answer
Well, here is a new thought. If you were driving without your parents permission, then your parents car insurer might cover the claim, unless there is a specific policy exclusion for family members driving with or without permission.

If your parents insurer does not pay, then the other driver can sue BOTH you and your parents.