Expert: Richard Hixenbaugh - 9/14/2011

Question
Hi, I was second driver listed on my friends insurance policy for some period. In that period I took vehicle on rent from one of the Rental Company. I didn't took any insurance from rental company as I was insured by friends insurance policy.when I rented the vehicle, I just saw vehicle from the front and
back. I drove the vehicle for 3 days but when I went to return vehicle, rental company people said there is dent on the front and it is visible only when you see from some specific angle. At that time they said they are going to talk to insurance company, but I said I will go for dispute, then they said their damage recovery unit will call me about the damage first. After that almost one month, I haven't heard anything from rental company, and I removed my name from my friends policy. Now rental company called me and said there is $1000 expense to fix damage and asking me for my insurance info or pay directly.My question is, If I give them insurance policy info, is my friends premium is going to increase? is that going to hamper my friends insurance history or it will come on my name?. Also should I go for dispute with company , how much dispute cost generally occurred? or should I pay from my pocket?


Advance Thanks for help

Answer
Hi John,

The only dispute would be in court. You would have to prove that you did not cause the damage. If there is only a dent, $1,000 sounds like a lot. You should ask for a photo of the damage as well as a detailed estimate of the repairs and what they are asking for. Then you can try to negotiate the amount due.

If a claim is made on your friends insurance, it will be considered to be an at fault accident, but it will be on you. Since you are now off of the policy there should be no affect on the policy. If a claim is made on your friends policy, the insurance company will verify the damage and the cost of repair and will negotiate a final settlement.

I hope this helps
Richard Hixenbaugh