My friend borrowed my car and ended up wrecking it. Am I in trouble?
Last week, my friend Toonces took my ’87 Buick LeSabre for a spin and got into a serious accident. (It wasn’t his fault, but that’s beside the point.) Unfortunately, it looks like my car might be totaled, and I’m bracing for some hefty medical bills for everyone involved. There was a cliff in the mix, which didn’t help.
I spoke with the insurance adjuster today, and I’m feeling really concerned. Even though I have the state-required coverage, my insurance is denying my claim and won’t cover the repairs. According to the adjuster, my buddy should have been listed on my policy because he lives with me. I tried to clarify that he’s not on the lease and he hardly ever drives my car—he just enjoys hanging out in the sunny spot by the slider door in the kitchen.
Here’s my question: Do I actually need to list him on my policy? If I do (my fault), would I be able to report the car as stolen and have insurance cover it? He didn’t exactly ask for permission; he just yelled “beer run” and grabbed my keys off the counter.
I feel like I’m being reasonable here. I pay my insurance consistently and have only made three claims in the last two years. What I really need is to replace my car—ideally with something from 2020 or newer, and a foreign model would be great.
Do you think this will impact my insurance rates?
Location: Michigan
I’m sorry to hear about your situation; that sounds incredibly stressful. Regarding your questions, here’s some information that might help:
Listing Friends on Your Policy: Generally, if someone lives with you and frequently drives your car, insurance companies expect you to list them on your policy. Since Toonces lives at your place, they might view him as a “regular driver.” It’s always best to check with your insurer about who should be listed to avoid these issues in the future.
Reporting the Car as Stolen: Reporting the car as stolen could lead to legal trouble, especially since you mentioned that Toonces shouted “beer run,” which indicates he did take the car with at least some understanding. Trying to file a false claim like that can have serious consequences, including potential criminal charges and the risk of losing your policy altogether.
Claim Denial and Your Insurance: If your insurance company is denying your claim, consider reviewing the policy carefully. Look at the specific exclusions and terms related to permissive use. Since he’s technically a resident and you didn’t formally prohibit him from using the car, the adjuster may have a point.
Rate Increases: Unfortunately, having a claim can potentially raise your rates, especially if it results in a payout. Discuss this with your insurance agent; they can provide insights into how this might affect you going forward.
Next Steps: You might want to consider consulting with an insurance agent or a lawyer specializing in insurance claims. They can help you navigate the specifics of your case and find the best way to address it moving forward.
I hope everything works out for you and you can find a resolution soon!