What is my liability and will my rates go up?

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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 29, 2012

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Insurance Question from Philadelphia, PA

Asked on 11/29/2012

What is my liability and will my rates go up? I loaned my car to a friend. They backed into an unoccupied car and left the scene. I recieved a call from an insurance company. Where do I go from here, should I contact an attorney? I live in PA.

Answer given on December 06, 2012

If you loaned your car to a friend, your insurance on your car will pay for any damages to the other car If they left the scene of the accident, that is a problem they will have to work out with the police. You should suggest that they go to the police about the accident.You need to call your insurance company and explain what happened. Unless you have a named driver policy, your insurance company will work with the other insurance company to work out repayment for the damages caused by your friend. If there is damage to your car that will come under your collision coverage, and subject to your deductible.Your rates will not increase if your friend is not listed on the policy. His rates could go up, if he has his own car insurance. Your insurance company will ask about your friend, and may ask to exclude him from your policy.

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