... about Auto Insurance and Auto Safety.

Today's question is a very basic one but one that I often see people on the board mispeaking about. Here it is:

Jack loans his car to Betty. Betty is driving to pick up a loaf of bread at the store and on the way, loses control around a curve. She leaves the road and strikes a tree.

Whose insurance policy is going to cover the accident, Jack's or Betty's ?

 

I would think it was Betty's insurance -- Kinda like when you rent a car??

 

In this case, Jack's, it's the car that is insured, not the person... in most cases, i would think this is the case.

 

As far as i know it is the responsibility of the person the car is insured under, not the driver.

 

This reminds me, I saw a commercial last week from one insurance company touting the fact that they will cover anyone you let drive your car. I don't remember what company it was (maybe Geico?).

 

Well, now I know!

 

Your giving up so easy? We have another day before we get the "real" answer...

 

Oh!!!! Sorry this is my first day on the forums.... Didn't know the rules. I can certainly debate my side further if need be.

 

It would usually be Jack's insurance, unless Betty is over 16 years old, licensed, and living with Jack, or unless Betty is excluded from the policy. Then the poor car is out of luck!

Did I get it right? Did I?

 

Assuming Jack and Betty are on a different insurance policy, Jack is screwed.

 

This question is more interesting than I thought it would be !!

 

I don't know so I won't guess. I suppose I could dig into my files and pull out my 50 page State Farm policy and actually READ it. But what fun would that be?

Actually, my answer is: who cares? Just don't loan Betty (or anyone) your car!

 

If you don't know AND you don't care, why did you bother posting ?

 

I'm going to say that Jack's company will say it's Betty's... and Betty's is going to put the responcibility on Jack's.

Ultimately, Jack's will pay... after finding that Betty is uninsured. They will however pursue her in cival court. Ultimately they will place a lean on the shack she calls a home and garnish her wages for the next 20 years (have to pay for that "extencive injuries" claim filed by the driver of the car Betty hit. Right?)

 

Interesting...

 

You'd have a tiny chance of being right if Betty had hit another car.

Cute though.

 

This happened to 2 friends of mine. The guy who lent his vehicle -- his insurance had to cover it. He collected the deductible from the driver, though

 

What I would like to know is if Betty's insurance doesn't cover Jack's wrecked MINI. Who gets Betty's life insurance after Jack kills Betty.

 

LOL, well, better get debating then , ya got till 9 EST ....

 

I believe that insurance follows a vehicle and not a person.

 

You have to be careful. How old is betty? Under my insurance anyone who drives my car is covered, UNLESS the driver is under 21. It works for me as I have no kids.

 

Okay, folks who said, "Jack's insurance covers this accident". You are right. As long as Jack gave Betty permission to drive the car, his policy will cover the accident.

Renting a car is different. You sign an agreement that says YOU are responsible for any accidents. But don't ever purchase the rental company's insurance if you have an auto policy... your policy will cover the rental car.

GEICO, or whoever that was, is using a marketing ploy. Every major insurance company covers that situation.

Jack's policy still applies, regardless of permissive use because permissive use is implied when someone is listed as a licensed driver in your household.

And I didn't mention any driver exclusions, did I??

Jack might be screwing Betty on the side, but he's not screwed if they are not on the same policy.

Who are YOU insured with ? And in what State ? I'm surprised the insurance department in your state allows them to do that. I never saw a policy exclusion like the one you mention.

 

Although I am not surprised at the answer, some of what you said surprised me...

I used to have two cars, so my old agent took that option off to save some money, granted he told me, but wouldn't this option be able to be used by a shady company to beat others prices?


I used to be insured by Allstate in California. I lived with a friend and we were not related, both insured separately with the same agent. We were told we are excluded on each others policies. This was not something we were told or aware of until one of us saw it stated on the policy long after we had been driving each others cars. When we showed the agent, he didn't even realize it. It would have cost us a fortune to be insured to drive each others cars.

 

Hehe that's what i meant when i said he's screwed. Jack's insurance covers it sure but with insurance

 

You're confusing two different things, TWON. What your agent took off your policy was your Rental Reimbursement coverage. That coverage pays for a rental car should your own car be involved in an accident.

What I'm talking about is Collision and Comp coverage on a car you rent. Say you go on vacation and you rent <<gag gag>> a Minivan. The rental company tries to sell you their insurance but you have a full coverage policy on a car you own. DO NOT buy the rental company's comp and collisin coverage... you have it.

Of course, what I forgot to say in my answer post was that if you have an old car and choose not to have comp and/or collision coverage, then you SHOULD buy the renter's coverage.