Insurance question my friend borrowed my car with out permission and got into an accident?

Question

I'll make a long story short I was sleeping my friend took my car fell asleep at the wheel and hit 2 parked cars left the scene to get me by the time we got back the car was towed. My friends been going down the police station to get the police report amended as him as the driver but he hasn't caught the officer yet. Meanwhile I call my insurance and tell them the story, they tell me if i say my friend took the car w/o my permission then my insurance will deny the claim from the 2 other cars insurance and they will sue me personally ( I haven't given my recorded testimony yet but I'm sure my original phone call was recorded). He still needs to go to the police station to amend the report he went already 4x but was unsuccessful because the officer was not there. Is there anything I can say or do at this point to mitigate this almost already out of control situation. What should I do from this point on? The accident happened in NYC and I have Gieco any help would be appreciated

Answer 1

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Answer 2

Ooch, Geico.  Cheap rates, but no customer support.

So basically your friend stole your car, totaled it, and get it towed.  Nice friend. =)

What you need to do is tell your insurance company that you did give your friend permisison to drive your car.

As a permissed driver, he will be covered under your insurance.

HOWEVER, since you were not the driver, your insurance will not go up in price!  They might non-renew you at your next 6 month cycle.

You friend will thusly be covered under your insurance, but will face all the negitive marks on his insurance for the next 6 years(atleast ti's 6 years in CA and TX, I'm not sure about NY).

Still try to talk to the officer.

Be sure to get it reported under your friend's name.

Feel uncomfortable lying to the Ins Co?  Just think like this:

Has your friend every borrowed your car?

Have you had any reservations about lending your car to this friend?

If he's borrowed it before without reservation from you, then he can reasonably assume that he can borrow it for any reasonable errend in the future, such as driving from your place to his place.

Answer 3

I have been in a similar situation.

In my case, the insurance agent basically directed us to state that there was an open permission for him to use the vehicle. You just weren't aware at that moment he was using it.

In my case the driver even had a suspended license, but insurance still covered. (State Farm ins.)

Good Luck

Answer 4

Either he stole it,or he had permission.

Unless you filed theft charges against him and reported the car as stolen, he legally was driving with "reasonable permission of use".

If you didn't file theft charges and report the car as stolen, your insurance shoud pay.  You gave permission.  If the car was being operated as stolen, THAT is when your insurance company can deny the claim, HOWEVER, then you can't be held liable for the damage!

Bottom line - I think the person you talked to told you wrong.  

But if you didn't report the car as stolen, and don't want to prosecute your friend for auto theft charges, he DID have implied permission to use the car.  Now, your company might still be able to deny the claim, if he lives with you and isn't listed on your policy.   But if he doesn't live with you, and doesn't have regular access to the car, it shouldn't be a problem

Your REAL problem is you have no agent to advise you.  You're your own agent, with Geico.  Good luck.