Question:
My boyfriend borrowed my car for a short errand. I am not listed on
his policy, and he is not listed on mine. He slid into some gravel
and smashed the front end of my car. No other vehicle was involved.
He says that HIS insurance company doesn't cover him for other
vehicles. That sounds strange to me. Why should MY insurance pay
because of his poor driving? What can I do besides maybe get a new
boyfriend?
Answer:
We can't give you relationship advice, but as for damages to your
car, your boyfriend is correct. Car insurance follows the car, not
driver.
You can't claim the front-end damage to your vehicle under his
car insurance policy. Instead, you'll need to file a claim through
your own
collision coverage.
Your auto insurance policy covers your car even when someone else
is driving. This will count as a claim against your policy, and you
will owe the deductible amount. Your rates may rise as a
result.
If you don't have collision coverage, then you must pay out of
pocket for the repairs to your vehicle - or make your careless
boyfriend pay.
It could be worse. If your boyfriend had hit someone's property
(car, fence, building, etc.), then your
property damage liability coverage
would have been used to pay for those damages. Once your liability
limits were exceeded, then it's possible his own liability
insurance would be tapped to pay the excess damages.
Grab your car insurance policy. Look at the limits of your
liability for bodily injuries and property damage. Consider what
your car is worth. Check your
deductible
. Now add them all together.
At minimum, that is what you risk every time you hand the keys
to someone.
But you're not off the hook once the insurance companies have
paid out every nickel they should. Once both policies are tapped
out, he and you are left personally responsible for the cost of any
remaining damages. That means anything you own or have saved could
be a target if an accident victim decides to sue. As a car owner,
you have vicarious liability for those who operate your vehicle -
and that is why it's always risky to let someone else use your
vehicle.
Love is one thing; insurance is another
If you have collision coverage, then before
filing a claim
there is a couple of things you should do.
First, review your policy and make sure your boyfriend is covered
to operate your vehicle. He likely is covered as a permissive user
of your vehicle. If you live together, your insurer may have
required you to list him as a driver on your policy for him to be
properly covered and so refuse to cover this incident unless you
put him on the policy and pay back premiums for him. (See "Who can
drive your car?")
Next, get an estimate on the damages done to your vehicle. If the
cost of repairs is less than your deductible amount, then there is
no reason to file a claim since collision insurance coverage only
kicks in after your deductible has been paid out. If the damages
are just a bit beyond your deductible, then decide if it's worth
making the claim and possibly seeing a rate hike.
Even though you weren't the one driving, if a collision claim goes
through your auto insurance policy there is the possibility your
rates could go up since your claims history is a rating factor for
insurers.
When it's all said and done, don't be surprised if your auto
insurer requires you to add your boyfriend to your policy. Even if
you don't live together, some insurance companies will say that
your boyfriend must drive your vehicle on a frequent enough to
wreck it, and thus he should be placed on your policy. Your insurer
would then analyze his risk as a driver and charge
accordingly.