Car insurance

[maniac779]

Does anyone have any insight into the following scenario?

My friend is borrowing my car with my permission and gets in to an accident. My car is not worth repairing, but there is minor damage done to the other car. As well, the occupants of the other vehicle are claiming injury.

The occupants of the other vehicle file a lawsuit again my policy due to their claimed injuries.

The accident happened in Ontario. My car was insured with me as the sole driver. My friend who was driving is also has insurance on her own vehicle.

How does this affect me after the dust settles?

 

[George Wallace]

Higher Insurance costs.

 

[Eye In The Sky]

Shouldn't the drivers insurance cover both you AND the party that was hit??

I don't know what company you are with, but I am pretty sure my policy (Personal Group) transfers over to any vehicle I  am driving that is registered and insured properly if I am the actual person behind the wheel.  Atleast thats how I remember the agent describing how it works when I was driving a rental 2 years ago after I got nailed by an 18 wheeler and because my car was a write-off, I was in a rental for 2 weeks.

 

[Greymatters]

I think its very dependent on how the insurance laws are applied by each province, what may be valid in Ontario may not be valid/applied in other provinces...

 

[eurowing]

Not that my opinion is correct, but given that you were listed as the "sole" driver, I suspect you are lucky they are covering anything at all and certainly not for your vehicle.  I cannot even have an "occasional driver" under 25.  It would jack my rates up. 

I made the mistake of lending my truck out in Trenton in the early 80's.  I had royal sex out of the deal.  I lost the truck, plus my rates went up. Insurance company was kind enough to cover the other persons car. The fellow I lent the vehicle to did not make good on his promise of restitution, despite a court order. 

So today, I still will not lend a vehicle, I'll drive it for them if it is that important.  Keep that in mind when someone wants to borrow your car.

 

[GUNS]

I know its after the fact but insurance companies offer,  an Accident Forgiveness Policy.

As the name implies, your first accident does not increase your premiums.

As for your accident, I think that both insurance companies would play a role in the settlement.