Why do they not have to cover the policy?

UPDATED: Sep 30, 2022

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Why do they not have to cover the policy?

I allowed a friend to use my car and it was in an accident, I had collision coverage due to a loan but the insurance company is saying they will not cover because the freind was staying with me.

Asked on February 9, 2017 under Insurance Law, Wisconsin


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

Because you have to list anyone who lives in your household and who could potentially access or use your car as a driver on your policy (and possibly, or even likely, pay more, for having additional drivers). If the friend was staying with you, unless it was just a few nights on a visit, he would very likely be considered to have been a member of your household for this purpose, so he should have been on the policy. If he should have been on the policy but was not, the insurer can refuse to pay. If the feel he was not there long enough (and note: there is no clear or firm line as to when someone is with you long enough that they must be listed), you could sue your insurer for "breach of contract"--for violating their obligations under the insurance policy, which is a contract, to pay for the claim. If you can convince a court that you did not need to list your friend, the court can order the insurer to pay.
You could also sue whomever was at fault in causing the accident and damaging your car--whether that was another driver who hit your car, or your friend for driving carelessly.

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