DRIVING A VEHICLE YOU DON’T OWN BUT DO HAVE INSURANCE TO DRIVE
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UPDATED: Apr 12, 2012
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Insurance Question from Hi Land, LA
Asked on 04/12/2012
DRIVING A VEHICLE YOU DON’T OWN BUT DO HAVE INSURANCE TO DRIVE VEHICLE WAS TOTALED INSURANCE COMPANY WANTS TO DENY CLAIM DUE TO INSURER DOESN'T OWN VEHICLE?
Answer given on April 13, 2012
Auto insurance follows the car. The named insured on the policy should be the registered owner. The policy can list additional drivers, and many allow permissive users to be covered in the event of an accident.If the car that was totaled and had collision insurance, the insurance company should agree to pay for the value of the car less its deductible. However, if the policy is in the name of someone who does not own the car, then they will most likely decline coverage since there was no insurable interest for the named insured for the car that was damaged. However, they should pay even though the named insured was not the driver unless it is a restricted policy.Just because you have insurance to drive, it does not mean your insurance will pay for the repairs to the car, since you don’t own it. The only company which should respond is the insurance company covering the car, and the registered owner.
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