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Auto Insurance Claims/wrecked borrowed vehicle

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Expert: - 4/10/2010


Question
Here is my situation.  My car was broken into and not drivable.  A friend loaned me her car to use until mine was repaired.  I got into an accident (my fault, rear ended a car).  I tried to place claim with my insurance but was told that insurance follows the car not the driver.  Let me state that my friend HAD given me permission to use the car.  When she found out she had to claim it on her insurance, she told her agent that I had taken the car without her permission.  She then explained to me that then her insurance would repair the cars and then file with my insurance to recover the damages and it would not affect her rates.  She is telling me to lie to her agent and say that I took the car without her permission.  It is my word against hers.  If I had taken it without permission and then her insurance filed with mine, would mine pay the claim or try to sue/prosecute me?  I feel guilty about the accident but am afraid to say I took the car without permission when i did not.  Any advice appreciated, thanks!

Answer
Do not follow her advice.  She is wrong on several levels.

First, this is insurance fraud, which is a felony.

Second, there is no free ride.  If her insurer believes you took the car without permission, they will pursue your directly to pay for all damage from the accident.  Your insurer will not pay if they believe  you did not have permission, as all policies exclude coverage for non-permissive users.  Her insurer will then sue you directly.

Third, she is accusing you of a crime, (veh theft or unauth use of veh) which is a felony in most states.

You should tell the truth, and explain to her that she should also for the reasons noted here.  She has already lied to her insurer which is a problem.  But if she comes clean now, they will almost certainly handle the claim correctly and not go after her.

Auto Insurance Claims

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Claims Guy

Expertise

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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