My daughter who lives with me borrowed my car and was in an accident. Will my insurance cover the accident?

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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: Oct 20, 2012

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Insurance Question from Dublin, GA

Asked on 10/20/2012

My daughter who lives with me borrowed my car and was in an accident. Will my insurance cover the accident? The accident was in Dublin, GA. My daughter lives with me and is not listed on the policy. She has not been excluded because I have not reported her as a licensed driver to my carrier as of yet. I do not know if my carrier is a named driver company or not. it is State Farm Ins. The accident caused a several hundred dollars of damage to the other vehicle and probably a thousand dollars to my vehicle. Will my insurance cover this and what is the likelihood of my policy being cancelled?

Answer given on October 23, 2012

If your daughter caused an accident while driving your car, your insurance should pay for the damages to the other car as well as your own car. Insurance follows the car, so the insurance will come from your policy. Your car will be subject to the collision deductible on the policy.Most insurance policies are not a named driver policy, so your daughter would be covered. After the claim is settled your insurance company will probably askfor the driving information on your daughter. Since she lives with you and does not have other insurance, you need to add her to your policy. Any tickets or accidents will cause your rates to increase. If you choose not to add her, the insurance company will ask that she be an excluded driver and she will not be covered going forward for any incident involving your car. You should go ahead and add her to your policy and pay the additional premium if she is going to continue to live with you.


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