unlicensed driver

[jmpine]

What is the name of your state? IA
My daughter let her boyfriend, who doesn't have a license, drive her car to pick up his paycheck and on the way home he was involved in a one car accident which totalled her car. She has full coverage insurance but I told her I didn't think they would cover it since he didn't have a license. Is it unheard of for an insurance company to cover the car anyway? Also, the coverage is in her name but on my policy, can they drop my coverage if they decide to drop her?

 

[alnorth]

Read your policy. If you dont have it or dont understand it, the insurance company will let you know pretty soon. That may seem to be a simple and dismissive answer, but its not, different companies often have a variety of exclusions. I could be wrong here, but after some research, I dont believe the basic ISO auto collision policy explicitly excludes coverage when your covered auto is used by an unlicensed driver. However, your specific insurance company may have their own exclusions which could exclude coverage for that situation. Read your policy carefully, think about what you read, then look through it again, but I wouldnt automatically assume this accident is not covered unless the policy indicates that it is not covered. (I guess they could argue that she fully intended to regularly let the boyfriend drive without telling the insurance company, but that could be a stretch)

As for your coverage in the future, the company may be entitled to drop your daughter if they choose, many policies permit the company to cancel if someone who can be reasonably expected to drive the car loses or doesnt have a license. You should be able to keep your own coverage if they insist on removing her, but it will hopefully not go that far.

 

[ecmst12]

Most likey no, this will not prevent coverage. She'll have to pay her deductible (which really boyfriend should pay), but as long as she gave permission for him to be driving, coverage probably won't be an issue.