Should a Dealer's Insurance Cover Accident in a Loaner Vehicle

**smcalifornia** · 08-24-2010, 10:23 AM

My question involves insurance law for the state of: California

I was t-boned by another driver and was somehow found "at fault" for the accident. Now the dealer who loaned me a vehicle from off the lot while my car was being repaired is asking me to contact my insurance to have them paid out for their total loss.

The dealer never gave me any paperwork to sign stating that I am liable or saying that they had insurance. I dont see how contacting my insurance to cover their vehicle would work out. My insurance does not cover other vehicles than the one stated on my policy. PLEASE HELP ME!! What are they responsible for and how can I go about fighting the other parties insurance to keep my record clear of an "at fault" accident???

**Mr. Knowitall** · 08-26-2010, 10:43 AM

Usually when you are t-boned and found at fault, it's because you ran through a stop sign, red light, yield sign, or otherwise failed to yield the right of way.

Why not cooperate, make a claim with your insurance, show the rental company the denial of the claim, and see what happens next.

In terms of the other party's claim, you should have coverage for that.

If you want to keep this off of your insurance, prepare to write some big checks out-of-pocket.

**smcalifornia** · 08-26-2010, 05:22 PM

Well the issue is that she is the one who ran through a red light. She lied to her insurance and told them she ran through a yellow. At this point I have no clue what to do because the dealership refuses to report the accident to their insurance so I have no one on my side fighting for me. At this point I am scrambling to get the accident report from CHP.

I guess what I really want to know is, in the state of California is a dealer legally obligated to have insurance for people they give "loaner" vehicles to drive. This was not a rental car where I can opt for insurance.

An answer to this question would be awesome.