Can an insurance company have my license suspended?
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UPDATED: Apr 17, 2013
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Insurance Question from Orchard Lake, MI
Asked on 04/17/2013
Can an insurance company have my license suspended? I was going to purchase a vehicle. The person told me I could test drive it and take it to my mechanic. On my way there, the tire blew and caused me to pull into the other lane. A vehicle struck me. He was speeding in the fast lane and tried going around me infusing of stopping (crash occurred on shoulder of highway). The vehicle was not mine, the guy said it was insured, but I didn't have proof. The vehicle was never in my name. Now the insurance company of the other driver is saying I owe them money or my license will be suspended. They have not even sued me for me to fight the claim.
Answer given on April 18, 2013
In auto insurance, the insurance follows the car. In this case, the owner of the car that you were test driving would be responsible for the accident, even though you caused it. You need to contact the owner of the car and have them report the claim to their insurance company.You should also speak to the other insurance company and give them the name and information of the car owner. Explain that you were not, and are not, the owner of the car and that they need to contact the owner for coverage.If the car was not insured, you should contact your insurance company and report the claim to them, you might even do this now, just to put them on notice. You could be held responsible if there was no insurance on the car through the owner.While each state is different, the insurance company does not have the authority to suspend your license, but they could contact the Dept of Motor Vehicles and advise that you may not have insurance.
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