My friend let her brother drive her car and he was uninsured?

Question

He broke the red light and hit a Merzidez. Her insurance agreed to pay for everything. Will her premium go up and how much? He was not listed on the policy, because they wanted to save money. If the insurance pays, why should we pay additional cost to add somebody on the policy?

Answer 1

Your friend is lucky. Most insurance companies have a permissive use policy. However, it is always a good thing to make sure that the company has this policy before letting someone else drive your car. Her insurance will go up because it's a claim and insurance always goes up after a claim it's the way of the pooled risk matrix. Add a bad factor rates go up. Have fewer accidents for the companies area of pooled risk the premiums go down.

Answer 2

Your friend is lucky that the insurance company agreed to pay. Although some insurance policies agree to cover anyone who has the policy owner's permission to drive and a valid driver's license, even those companies require that you list all regular drivers of the vehicles and/or anyone who resides in your household and does not have their own insurance.

Your friend could have very easily been hung out to dry.

Since that is not the case, as a general rule, yes, she can expect her premiums to go up. (There are some exceptions as far as the accident goes... if she's been with certain companies for long enough, they'll forgive the first accident.) If she gets a rate increase as a result of the accident, it will likely be 30-35%.

That's not even to speak of the increase that she'll see for adding her brother to the policy. Now that he has an accident, that will be chargable against him on the policy. Plus the company is well within their rights to insist that he be added if he doesn't have his own insurance (since he is obviously *is* driving the vehicles.)

The great irony is, she and her brother lied to the insurance company (it was a lie of omission, but still a lie) when they didn't add him to the policy (in order to save a few bucks.) The insurance company could've left them swinging in the wind, if they chose to do so. But in this case, they didn't. Now, because the company will insist that the brother be listed, dollars to donuts the friend is already shopping for other insurance. (And, no doubt, once again omitting the brother.)

And somehow, the insurance companies are the bad guys in these scenarios.

Answer 3

The insurance may go up. That is the risk you take when you let someone else drive your car. The reason why the premium is higher for extra drivers is because more drivers, more chances of accidents. The greater the risk to the insurance company, the higher the premium.
By the way, even if he was listed on the policy, the premium might have gone up anyway.

Answer 4

Does he live at the same address, and regularly drive the vehicle? If yes to either, he probably should be added to the policy, if yes to both, he definitely should be added to the policy, because it's the right thing to do (read honest).

Of course her insurance will go up, she now has an accident and large payout against her vehicle.

Again, insurance goes with vehicles, not with people. Anyone driving her car with permission is covered....under her insurance.

Answer 5

Yes your insurance will definately go up. Your car was probably covered by uninsured driver policy. Yoru actually lucky that the insurance agreed to pay it. Because they are liable now for both your car and the other car, they paid double and you will too. Put your brother on the policy, it'll go up, but likely they won't cancel on you. p.s. they may cancel when everything is settled.

Answer 6

If he lives with her they will most likely add him to the policy. They will add him since he drove the car regardless if he lives there or not however if he supplies her company with proof of other insurance they should remove him. Note to self, do not let people drive your car...you will be the one that pays for it