Should grandaughter pay portion of insurance increase?

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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: Nov 2, 2011

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Insurance Question from Burton, MI

Asked on 11/02/2011

Should grandaughter pay portion of insurance increase? Grandaughter borrowed car. Backed into another students car in High School parking lot. We fixed grandpas car out of pocket, other car had no collision. Other car sued grandpas insurance for mini-tort for $500. Grandpa has had two prior at fault accidents and his insurance preminum has gone up drastically. Grampa wants grandaughter to pay him $450 every 6 months for the next two years for her portion of increase.What is the correct thing to do?

Answer given on November 03, 2011

If your granddaughter borrowed your car, and she does not live in the household with you, her accident should not affect your insurance rates. Auto insurance rates on the drivers in the household based on the driving experience and accidents or tickets. Insurance follows the car, so if there is an accident caused by a driver of your car, then your insurance will pay for the damages. If the driver involved is not listed on your policy, your insurance company may ask for information on that person’s insurance or ask that the driver be added to the policy. If she is rated on another insurance policy, then the rates on that policy will increase for the accident.If your granddaughter lives with you, then she should be added to the policy. Her accident may then affect your rates. It would be acceptable to expect your granddaughter to pay for the increased cost to the insurance.

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