Liability for Premium Increases

[steveatx]

What is the name of your state? TX

A coworker of mine lent an acquaintance her car, and unfortunately the acquaintance was involved in an accident for which he was at fault.

As a result of the accident, my coworker's insurance premiums will rise dramatically. I understand that she may be successful suing him in small claims court for the deductable she will have to pay, but is it likely that she could receive compensation from him for the increase in her premiums that will be brought upon by filing the claim?

 

[racer72]

but is it likely that she could receive compensation from him for the increase in her premiums that will be brought upon by filing the claim?

Nope, that is a risk she assumed when she let the person borrow her car.

 

[moburkes]

How do You Know This?

What is the name of your state? TX

A coworker of mine lent an acquaintance her car, and unfortunately the acquaintance was involved in an accident for which he was at fault.

As a result of the accident, my coworker's insurance premiums will rise dramatically. I understand that she may be successful suing him in small claims court for the deductable she will have to pay, but is it likely that she could receive compensation from him for the increase in her premiums that will be brought upon by filing the claim?

How do you know this? I have never increased a customer's premium because of an accident that somone else had in their vehicle. Accidents follow the driver (for chargeability), But the insurance company of the insured vehicle pays the claim. Yes, the co-worker can sue the at-fault party for their deductible back. No, theyshouldn't sue for the potential premium increase. They took a risk when loaning the car.

 

[steveatx]

My premium rose several hundred dollars after filing a claim for a hit-and-run when my car was hit while PARKED and untattended. I assumed the premium may rise for her after she contributed a lot more to the accident by letting someone drive her car then I did by parking it in a legal space.

p.s. If she were taking the risk of a potential charge or change in rates from her insurance company for letting him drive the car, then how could she successfully sue for the deductable?

 

[moburkes]

My premium rose several hundred dollars after filing a claim for a hit-and-run when my car was hit while PARKED and untattended. I assumed the premium may rise for her after she contributed a lot more to the accident by letting someone drive her car then I did by parking it in a legal space.

p.s. If she were taking the risk of a potential charge or change in rates from her insurance company for letting him drive the car, then how could she successfully sue for the deductable?

Insurance premiums increase for LOTS of reasons. People automatically assume that it was because of the claim tha twas filed, but that's not always the case. Also, different insurance companies charge different ways. For example, company A might only surcharge an at-fault accident, if the payout was over $1000, while company B will surcharge ANY accident, even if there was NO payout.

Premiums increase because the insurance companies raised their rates. They increase because a person's credit score has gone down. The person may no longer qualify for the same "tier" after submitting a certain number of claims (I have rarely seen this, but it has happened). There are several reasons, which may or may not have to do with the accident.

I don't know if the co-worker will be successful in suing for the deductible. I'm only speaking in regards to the insurance company's view point.