what if Insured person doesn’t pay deductible for the car owned by other person

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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: Dec 14, 2016

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Insurance Question from Box Canyon, CA

Asked on 12/14/2016

what if Insured person doesn’t pay deductible for the car owned by other person I own a vehicle lease, it's under my name. My friend was driving my car a lot. He has it's own insurance coverage for my car. One day my friend crashed the car. The insurance company paid everything to the bank but the deductible. My friend disappeared, not responding. Question: Does he legally must pay the deductible? if so, how to obligate my friend to pay?To note: a) I own the vehicle, e.g. I have agreement with the bank. So the bank can't pursue my friend for that deductible. My friend is not obligated to the bank.b) Insurance company can't pursue my friend for the deductible as well..

Answer given on December 27, 2016

If I understand correctly you had a leased car & let your friend use the car and he had insurance on the car. The insurance company will only pay for the damages to the car less the deductible. They have no requirement to try to collect the deductible since they did not pay the deductible. The bank has a contract with you so as far as they are concerned, you are responsible for the deductible.Whether your friend has a legal requirement to pay, or reimburse you for the deductible will depend upon whether you have a contract with him that holds him responsible. While I am not a lawyer, it would seem that it would be the only way you would be able to hold him legally responsible. You can try to file a claim in small claims court, but the court may not rule in your favor. You may just end up paying the deductible, which you would have done had you had the accident.

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