Expert: Richard Hixenbaugh - 5/21/2010

Question
Hello, I've a bit of an issue with my brother who isn't on my auto insurance policy. He used my truck and hit the neighbor's car. This was about a month ago and apparently there was never a police report made. My neighbors left a note on my truck this morning asking for his insurance information as what ever information my brother gave my neighbors at the time was invalid. He no longer lives here as we've had a bit of a falling out and he refuses to own up to the accident and says he's not paying for anything. Am I going to have to go through my insurance and pay out of my own pocket?

Answer
Hi Joe,

This can be a tricky situation.

First of all, auto insurance follows the vehicle not the driver. So your brother insurance does not come into play here at all. It would be your insurance that would pay. The problem occurs if your brother lived with you at the time of the accident. All insurance companies require that everyone in the household be listed on the policy as a potential driver. If they are not listed then the insurance company may have grounds to deny the claim. In which case you would have to pay for the repairs out of your pocket. If your brother did not live with you at the time of the accident, then your insurance company will pay the claim in full. You can loan your vehicle to anyone that does not live in your house and they are covered, but everyone that livs in your house must be listed on the policy in order to be covered.

I hope this helps
Richard Hixenbaugh