Insurance question: Uninsured car in accident?

Question

My son (17) had permission to drive his uncle's car to the store when he was staying at his house. My son is in an accident and the car is totaled. I now find out his uncle does not have insurance on the car. Am I responsible for "replacing" the car? Does his uncle have any liability at all? I have full coverage on my cars. Will my insurance kick in at any point?

The accident was my son's fault. The roads were slick. There were plenty of witnesses and he wasn't doing anything dangerous. He is okay. The uncle did acknowledge that he let him drive it. I feel terrible and wasn't sure how much liability we had. I have full coverage insurance on my cars. Do you think that will replace his car? The car is not paid off. I think he owes $5k. I wasn't sure what our responsibility was.

Answer 1

You're not responsible in any way. If the uncle didn't have insurance he shouldn't have allowed a 17y.o. to drive the car. Uncle needs to prove that your son owes him in court.

Answer 2

In order to give you a definite answer we would need to know if the loss occurred in the U.S. and what state. The path to resolving this may also depend on your insurance company and how their policy is worded.

Generally, if there is no coverage on the uncles car then your liability coverage MIGHT cover damages your son caused to other property/vehicles NOT owned by the uncle.

In most states, your policy will not pay for the damages to the uncles car. There likely are exclusions under both your liability and collision coverage. (care, custody, control exclusion for one).

I would suggest that you report the loss to your insurance company. Yes it MAY effect your rates, but you need to ask your agent about that. It would seem that you could pay a lot of extra premiums for the $5000 value of the destroyed car. Your company can investigate the claim and then let both you and the uncle know in writing why your policy may or may not cover his vehicle.

Please keep in mind that legally (again depending on your locale) your son may be held liable for the damages to the uncles car. Just because an insurance policy says your son is not responsible doesn't mean that your local law wouldn't find him responsible. The law and insurance policies are two very different things.

Good Luck

Answer 3

Hard situation.

First off, the uncle is wrong for not having any insurance. However - I don't believe he has to have full coverage if it's paid off. If it was his decision to only have liability or no insurance - then he should not have let your son use the car.

However, I am gathering from your statement that it was not another driver's fault and therefore I am assuming this means your son was at fault. This is where I have a problem w/not having your son take some responsibility. He should not borrow someones car w/out being responsible for its care.

As a Mom and a Sister(in law?) you are trying to solve a tough thing and still keep peace w/family.
If your insurance covers your son on your vehicles, it "might" cover him on whatever vehicle he borrows for a temporary time. Just like my insurance covers me if I drive a rental. You'll need to investigate.
Also, your son needs to come up with a plan to show some responsibility to his uncle in some way. Perhaps a trade off of doing chores or odd jobs for his uncle or maybe your son pays the points difference on your insurance if you can help get him some insurance money to go toward another car.

No way are you "forced" to do these but it would be a "moral" thing to do.

Answer 4

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RE :Insurance question: Uninsured car in accident?
My son (17) had permission to drive his uncle's car to the store when he was staying at his house. My son is in an accident and the car is totaled. I now find out his uncle does not have insurance on the car. Am I responsible for "replacing" the car? Does his uncle have any liability at all? I have full coverage on my cars. Will my insurance kick in at any point?
Update: The accident was my son's fault. The roads were slick. There were plenty of witnesses and he wasn't doing anything dangerous. He is okay. The uncle did acknowledge that he let him drive it. I feel terrible and wasn't sure how much liability we had. I have full coverage insurance on my cars. Do you think that will replace his car? The car is not paid off. I think he owes $5k. I wasn't sure what our responsibility was.
Follow 20 answers

Answer 5

In many states, a parent is not liable for the acts of their kids, unless the parent is somehow negligent. It does not appear that you were negligent in any way that contributed to the collision.

Your insurance company probably won't cover this for many reasons. One reason is that the car was not listed on your policy. Even if your son was listed on your policy, the insurance usually follows the car. I suspect your policy would only cover the damage if your son was driving the car as a replacement for your car while it was in the shop.

However, your son is liable for the damage and could be sued. Unless you were negligent, you would not be responsible for it for the reasons stated above.

You may want to verify this through a lawyer in your own state as laws and insurance policies vary state to state.

Answer 6

depends on the state/country. in texas, liability follows the vehicle. your policy (under PROPERTY DAMAGE, NO DEDUCTIBLE) COULD (interpret: doesn't necessarily HAVE to) be used to pay for the uncle's car, but in no way are you responsible for damage to any other person's property. I sure wouldn't be jumping at the chance to file a claim on my insurance policy because someone else wasn't responsible enough to maintain insurance. Your rates will most likely go up if a claim is filed, based on the information you provided. Let the uncle handle it, his current rates probably won't go up that much, ya think?

Answer 7

If your son is insured on your policy I believe there is a possibility. Uncle is stupid and I don't think you should be responsible for his ignorance. This is a sad situation and there will be hard feelings. I hope your son is OK. Cars can be replaced but our children can not. I think you'll be ok with your insurance company but I don't think they will replace the uncles car that is his own fault. Sorry.

Answer 8

Is your son covered on your insurance policy? It depends upon what State you live in. Some States the driver is insured for any vehicle he is driving and in some States the vehicle is insured for certain drivers. Your best bet is to check with your insurance agent.

If your insurance won't pay anything, put yourself in the boy's uncle's shoes and assume it was your car and your nephew.
What would you expect? Perhaps between the two of you an amicable solution can be reached.

Answer 9

I'd make the uncle bring me to court - I would NOT volunteer to pay for this. Yes, the uncle is the owner of the vehicle, knew it was uninsured, and let it go out on the road anyway. I'd call that liable.

Whether or not your policy will cover on a secondary basis, depends on how long your son was staying at the Uncle's house. Was it a weekend visit, or temporarily living there? Normally, a policy owned by YOU would cover YOU on a secondary basis, but it's not HIS policy, he's just a listed operator. So it very well might not.

Worse to think about - who did he hit? Technically, he and the uncle are responsible for the damage to whatever he hit. Even if it's a light pole, the city can and likely will come after him for repairs.

I would absolutely report this to your company, and ask your agent for an opinion about coverage on a secondary basis.

Your insurance, *IF* it carries over, the physical damage part ONLY carries over if his car is a "temporary substitute" for one of your cars - which means, one of YOUR cars was in the shop. Which it doesn't sound like it was. It ALSO only carries over, normally, for vehicles used by the named insured, or their spouse. So I seriously doubt the uncle's car itself is going to be covered.

You have more of a likelihood of the PROPERTY DAMAGE to whatever he hit, being covered on a secondary basis, but I also have some doubts about that, as well.

Answer 10

no your not responsiable for the wrecked car at all in the uncle knew all a long that there was no insurance on the car he is in deep trouble for letting a 17 year old driving it in the first place in first of all what is the 17 year old driving the car in the first place cause he knew that he did not have a driver license in the first place what im trying to get at what if your son hit a person in killed them are injuries them for the rest of lifes he would be responiable for the death are injuries but not only that the uncle would also go to jail for letting a minor drive the car