Expert: Doctor Settlement - 5/30/2006

Question
My nephew (22 years) was driving my car.  He ran off the road into a fence.  No other vehicles were involved.  If I claim this on my insurance, will my insurance company then try to recover the claim money from him?  I don't want to cause problems with my brother and siser in law.  I think they should offer up to cover this on their insurance, is that possible?  The vehicle is paid for, valued at about $4,000 and the damage is about $2500.  Do I go forward and claim this on my policy?

Answer

Dear Sherrie,

This is a family political problem all right.  If your nephew was dodging a horse in the road, or a dog running loose, it would be a lot easier.  No way to blame him for that.

If he fell asleep or did not pay attention, they likely will not go after him.  The best way with this might be to call your agent and discuss it with her for a feeling.

If he is covered under your brother's policy, one could go that route, but it would be making a claim that may tag him or your brother with a lot more exposure in terms of increased premiums in the future.

But if you use your own policy, then you will face a deductible.  Why should you pay that?  Make him pay it.

If your company is not going to pursue the nephew (which I do not think they will), then my choice would be for your nephew to fork over your deductible and you claim under your policy.

Best Wishes,

Dr. Settlement, J.D.
http://www.SettlementCentral.Com