claim denied because mom not on insurance

[longneck]

What is the name of your state? Florida

My friend, Sarah, lent her car to her mom. The car was rear-ended while her mom was driving. The driver is uninsured.

Sarah and her mom have separate insurance, but through the same company. They also have the same residence address. Sarah filed a claim with her insurance to have the car repaired, but the claim was denied, supposedly because her mom is not on her insurance. The mom is NOT listed as an excluded driver.

Is this right? I thought it doesn't really matter who was driving the car, as long as it is just an occasional use, and her mom was not a regular operator.

Thanks for you help!

 

[shortbus]

Most companies insure a specific car for a specific driver. Insuring a car doesn't mean everyone is free to drive it "occasionally".

 

[fejee]

Did the insurance company say why they would not extend UMPD coverage? Did Sarah's mom, identify the uninsured vehicle or did the uninsured driver flee the scene and could not be Id'd? The reason I ask is coz some insurance policies exclude UMPD coverage if the hit and run vehicle is not identified by its license plate number or when there no physical contact with the UM’s vehicle.

I suggest you post the exact policy language of Sarah's auto policy under the section where it says, Insuring Agreement- Uninsured Motorist Property Damage Coverage. I would also like to know how the policy defines the following words:

1. Insured.
2. Insured Vehicle.

It would also help to see what are the exclusions listed under the section describing the UMPD coverage.

It is possible that coz mom falls under the definition of a "resident relative", and was not listed in the original auto application taken out by Sarah, the insurance carrier is trying to disclaim coverage. Or it could be that the vehicle damaged was available to mom for regular use and therefore that vehicle would not qualify as an insured vehicle under Mom's policy.

Does Sarah have collision coverage? Or did the carrier deny coverage under the collision coverage also? If it was denied, what was the reason?

It's important to know the reason for the denial in order to determine whether denial was in order? Also, was the uninsured driver also the registered owner of the vehicle he/she was driving? Oftentimes it happens that the driver may be uninsured but the regd owner may have insurance on the vehicle. Who is the legal owner of the other vehicle is also important to know. What if the legal owner was a car dealership and they may have their own insurance for such situations? I am not sure if mom can pursue claim against legal owner in such cases?

Seeking the assistance of the State Dept. of Insurance may be of some help. They may be able to tell your friend whether the claim was rightly denied.

Good Luck to Sarah and her Mom.

 

[fejee]

Most companies insure a specific car for a specific driver. Insuring a car doesn't mean everyone is free to drive it "occasionally".

I was under the impression that as long as there is permissive use and the person driving is not an excluded driver under the policy, there exists a potential for coverage.

Than again, I am not an attorney, but just a simple lawyer. A bush lawyer, that is. Juzz kiddin

 

[teflon_jones]

The reason this claim was denied is because both drivers have the same address. It is irrelevant whether they have their own cars and insurance. If two drivers share the same address, one can not be considered an occassional driver. An occasional driver must have a different address.

 

[CarAccidentVic]

Undisclosed Driver

In the situation you describe, your mother was a nondisclosed driver and your claim is being denied for material misrepresentation. If you check your policy, there is a clause that will say that any residence of your house hold who is of legal driving age not listed on your policy must be listed either as a driver or excluded driver and that all nondisclosed driver claims will be denied.

Insurance companies make money by charging a factored amount of premium for each risk. Each person of legal driving age at a residence is considered to have reasonable and frequent enough access to a vehicle that they are considered to be a risk and therefore must be listed as a driver or excluded driver.

Insurance companies are protected in most if not all states by being able to claim a material misrepresentation because an insurance policy is a signed contract with rates agreed upon by both parties based on the risk being presented truthfully by the insured. In some states they are allowed a clause in the contract that states all nondisclosed drivers are considered excluded. In states where they cannot claim material misrepresentation or driver exclusion, they are usually allowed to endorse the driver onto the policy effective the inception date of the policy and uprate the policy and require that you pay the premium uprate back to the policy inception before they process the claim.

In any even, you are responsible for all damages to your vehicle because your Mother was not covered by your insurance.

You may be able to claim it on your Mother's insurance if she has Under Insured Motorist or NonInsured Motorist Coverage but I am uncertain if those coverages apply in this situation.

I worked in the IT department of an Insurance Company for the last 5 years and I was responsible for writing the applications and so I am intimately familiar with these clauses.

 

[teflon_jones]

You may be able to claim it on your Mother's insurance if she has Under Insured Motorist or NonInsured Motorist Coverage but I am uncertain if those coverages apply in this situation.

Insurance follows the car, not the driver. I'm surprised you know a specific area so well yet not the basics...

 

[JusticeSeeker1]

Uh. My insurace card stays in my wallet. Does that help.

 

[fejee]

Uh. My insurace card stays in my wallet. Does that help.

Sure, as long as your car remains in your wallet. When driving the wallet, that is.

NEXT