Insured driver at fault in a uninsured car

[Moonshine]

What is the name of your state (only U.S. law)? Texas

While I was overseas on a business trip, my brother came home from college and borrowed my car without my permission or knowledge. The car was not parked at my home but rather at a third party location. That same day, he got into an accident for which he was at fault. Both cars were totaled. When the other party processed a claim against my policy, I found out my insurance had actually lapsed/cancelled 29 days prior. Therefore, the claim was denied and no payments were made. Now, the other driver's insurance company (Travelers) is coming after me (as owner) & my brother (as driver) for the property damages & medical expenses already paid to their client under the Uninsured Motorist coverage ($13k). Since my brother did have insurance for the two household cars he typically drives, we just now submitted a claim under his insurance to cover the liability. Do we have any grounds to stand on, since he was an insured at fault driver in this accident? Thanks

 

[ecmst12]

Your brothers insurance will very likely cover the claim. Hopefully his limits are sufficient.

How did he get your keys?

 

[Moonshine]

Because of my hectic traveling schedule, I keep several copies of my car keys at home and with family members. In this instance, I believe my mother gave him the key, told him where the car was and asked him to go get it. Could that have an impact on whether the claim gets paid or not?

My dad who manages all the policies is a very cautious & attentive man (lesson learned for me!!!) and has a great comprehensive coverage for all of them. Based on the limits in the policy, it should be enough to cover.

Thank you sooooo much for your guidance. The case seems to have gone in subrogation and the insurance company has been harassing me and using scare tactics to get me to write them a check like TODAY!!! However, I did want to give his insurance the chance to open and investigate the claim properly - since they had not been involved yet. Thank you again. I will actually get a bit of sleep tonight

 

[ecmst12]

The fact that you gave keys to mom who gave keys to him means there is no non-permissive use.

Next time make sure your insurance is current if ANYONE has access to your keys!

You COULD still get a ticket for having an uninsured vehicle on the road.

 

[Moonshine]

Thanks for the reply. However, I am not sure I completely understand it. Can you please clarify? Does the fact that he had indirect access keys to the keys mean that he has implicit permission to use the car? If so, could the insurance company deny the claim for the other party's damages based on that fact?
I appreciate your guidance on that point. Thank you.

 

[JKBee]

Doesn't the insurance coverage your brother has determine the liability of your brother's insurance? My husband and I are insured for whatever vehicle we drive. We are using my ex-husbands car right now, with his permission. He has no insurance on this car and his insurance does not cover him if he drives it. Check your brother's policy.

And don't just cave into the pressure of any insurance company. Know your brother's policy first.

 

[ecmst12]

If he had not been given EXPLICIT (the permission wasn't implicit, your mom gave him the keys and told him to drive the car!) permission to drive the car by someone you authorized to hold the keys, then YOU might have been able to escape liability even though he could not. But since he did not steal the keys and take the car KNOWING he was not allowed to, you are on the hook if his insurance won't pay.

A driver's insurance will usually act as a secondary backup to the owner's insurance, if the owner's insurance is lapsed or the limits are insufficient.

 

[Moonshine]

@ JKBee - Thanks for your input.
I was actually trying to find out that exact point. But to be honest, from the insurance documents I have reviewed, I can't really tell. The declarations page of the policy did not seem to indicate that point. I don't really know where to look because that's pretty much the only document my father has from the insurance. The reason I posted this question is to find out what the rights and benefits are under the policy so I would know what to expect. My father has had a long relationship with the insurance agent but we are trying to make sure that we don't get railroaded if they are reluctant to pay!!!

 

[Moonshine]

@ ecmst12 - Thank you for your prompt clarification.
I do understand your point now. I guess I will have to count on the good faith of the insurance company & hope it all works out for both my brother and I. Thanks again. I have been researching this subject for days & this is the best guidance I have gotten on the subject. Everything else only added to my confusion & despair.