Loaned car got hail damaged and insurance company won’t pay.

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Apr 6, 2012

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Insurance Question from Murphy, TX

Asked on 04/06/2012

Loaned car got hail damaged and insurance company won’t pay. Dealer loans me a car for driving while mine is being repaired at their shop. Dealer's car got hail damaged while in my possession. Dealer claims my insurance. My insurance policy has only liability and they said they won't pay for the damage. What should I do?

Answer given on April 10, 2012

In most states, insurance follows the car. Since the dealer owns the car their insurance should cover the damages to their car due to the hail. There was no negligence on your part, since this was what insurance often refers to as an Act of God.If the dealer expected you to insure the car while driving it, they should have made this clear. You would then have needed to check with your insurance company to see if they would have covered the car. Since you are after the fact of the loss, you can still ask your insurance company about coverage but they may deny any liability.When a car is loaned out, either by a dealer or a neighbor or friend, the insurance remains on the car for the owner. While the dealer may want to have you pay for the repairs, they should go to their insurance company. After the damage is repaired, if the insurance company feels there was negligence they may ask you to pay for the damages. You could then contact your insurance company and let them discuss the issue with the other insurance company and see what happens.


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