In Nebraska is it legal for an insurance company to make payment and then sue the other driver’s insurance for reimbursement.
Free Insurance Quote Comparison
Secured with SHA-256 Encryption
UPDATED: Sep 14, 2011
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
Insurance Question from Grand Island, NE
Asked on 09/14/2011
In Nebraska is it legal for an insurance company to make payment and then sue the other driver’s insurance for reimbursement. My son's friend wrecked my son's car. He had permission to drive but my son did not know the boy had been drinking. My son was not along. Car is registered in my name. Boy hit a parked car. He tried to flee the scene and was apprehended and charged with DUI. Insurance follows the car, so it is ours. They said if they pay they cannot(in NE) go after the other boy's insurance. They say the car is totaled at $3500 damages. I would like the boy to pay rather than turn in and raise my rates. His family maintains our insurance should sue theirs. My son has filed in small claims court.
Answer given on September 18, 2011
You are correct that insurance follows the car, not the driver. So, in this case your insurance will pay for the damages to the parked car under property damage coverage and, if you have collision insurance, it will pay for the damsges to your car, less your deductible. Since the boy was a permissive user of the car, there is little recourse. If Nebraska law does not allow your insurance company to go after the boy’s insurance, then your insurance company is on the hook for all damages.However, since the boy does have other insurance, and is not a driver in your household or on your policy, your rates will not be affected. The insurance rates for the boy’s insurance are the ones that will be increased due to the accident and ticket, even though his insurance company did not pay out on the accident. They are allowed to rate for the driving record of their client, so they will be able to surcharge the insurance, and/or non-renew or exclude the boy from the policy.You may be able to go to small claims court to have the boy pay for your deductible. You may want to check with an attorney, or ask your insurance agent about this.
IMPORTANT NOTICE: These answers are for general information purposes only and are provided by the person answering and FreeAdvice.com AS IS. It has not necessarily been reviewed by the management staff of FreeAdvice.com nor is it binding any insurance agent, broker, or other insurance professional or any attorney or insurance company. Insurance laws, regulations and practices vary from state to state and insurance policies and practices differ from company to company, by type of policy, by state and locality and by type of insurance. Tiny variations in the facts, policy language or a detail not set forth in a question often can change the outcome or a professional's conclusion. Although FreeAdvice.com has confirmed that the answer(s) was/were provided for the account of an experienced insurance professional, that professional may not be licensed in the state referred to in the question, and may not be experienced or up to date in the subject area. Unlike the answers provided here, upon which you should NOT rely, for personal advice you can rely upon we suggest you consult a licensed insurance professional in your area or retain a licensed attorney listed on AttorneyPages.com to represent you.