Will You Still Have Coverage if You Allow an Unlicensed Driver to Use Your Vehicle

[mrsball]

My question involves an injury that occurred in the state of: Michigan. My daughter, age 17, allowed her friend who was 15 to drive our vehicle. They were in an accident with a fire hydrant and a street sign. They also hit a parked vehicle. The parked car had $5000 worth in damages which has already been paid out. Our vehicle is totaled. The unlicensed driver was definitely at fault. The insurance company said they will cover all damages and pay us out, but will sue to recover the money they pay us. There were two tickets issued, one to my daughter (who is on the policy) for allowing an unlicensed driver to drive, and a ticket to the 15 year old driver for driving without a license. A few days later she was also charged with wreckless driving. Who will they go after, and who is responsible? Will they sue the two girls? What about us as parents?

[SChinFChin]

That would be under subrogation, basically a process where the insurance company goes after any people who is NOT under the insurance policy that caused damage, and try to recover funds. Since your daughter is covered under the policy, by definition, your insurance would not go after her, though your insurance rates would undoubtedly go up.

They would go after the 15 year old unlicensed driver of the car.