Other insurance co refuses to pay

[amy00]

What is the name of your state? Virginia

I was on my way to a concert a few months ago, when a car began to reverse backwards, eventually hitting my car. I was unable to reverse because I didn't have time to check and see if there was traffic behind me. I honked my horn but the car would not stop reversing. The driver was disoriented and I am pretty sure he was high. He told me he was parking the car for his girlfriend. The information he gave me was false, but fortantly I wrote down his liscence plate number. I was with a friend at the time. This occured in a bad part of town and the man was very big so I didn't want to risk questioning him and getting hurt. The police do not respond to fender benders.

My insurance company submitted his lisence plate # to the DMV and eventually we go info back and contacted his insurance company. The insurance compnay was having trouble getting in contact with him. Today we got a letter from the insurance company stating that, because the man apparently did not have permission to drive the vehicle, they are not required to pay anything. Which does not make sense to me at all.

1. He told me he was parking the car for his girlfriend.
2. He lied about his info.
3. Why should my parents bother paying insurance for me, when I could just drive my car registered under their name, hit someone else's car, and then say I don't have to pay anything because I didn't have permission to drive it?
4. If this is true...someone could steal my car, kill someone, then my insurance company wouldn't have to pay, so I would be sued and have to pay a tremedous amount of money...Why bother having insurance at all?
5. Is this correct? I honestly cannot believe it, and am angry beyond belief!!!!!!!!

Any advice would be greatly appreciated!

 

[Meatcutter]

First off, breathe.

Secondly, your partially correct on all this. Insurance companies have a clause in most contracts that state something to the effect they will not provide liability coverage for damage done by a non-permissive driver. This is for your protection. If someone steals your car and goes out and kills someone, it obviously is non-permissive use. The person who was killed or his family would attempt to present an injury claim to YOUR auto insurance as your insurance company covers the vehicle. When your insurance company denies liability coverage this is them stating that the damages were caused by the driver of the vehicle who did not have permission and if any one has a claim they need to go after the driver personally and not the policy covering the vehicle they were driving. The insurance company would then continue to defend you as the policyholder against any legal actions that may be brought forth.

Finally, as much as it sucks, the insurance company in this case has every right to deny your claim for damages since the driver of this other vehicle was a non-permissive driver. As you stated, the driver of that vehicle said he did have permission and the insurance company providing coverage for that other vehicle must have discussed this with him and there policyholder at length. A denial of coverage is very serious and the insurance companies can get in big trouble if denials of coverage are premature (aka bad faith). You will want to get a copy of their denial in writing. I suggest that you have your repairs done with your own insurance company and let them seek reimbursement from the other insurance company. They should do a full investigation on your behalf and get statements regarding permissive use from the driver and owner of the other vehicle. If they are able to prove that the other driver had permission then the other insurance company will have to reimburse them.

 

[Meatcutter]

Oh yeah, as a side note

99% of the time when an auto accident occurs, the facts of the accident change prior to everyone contacting their insurance companies.

Most people lie when it comes to admitting fault for an accident or if someone had permission. The insurance companies just go on the information presented to them.