Page 1 of 2 1 2 LastLast
Results 1 to 10 of 11
  1. #1
    Join Date
    Feb 2014
    Posts
    4

    Default Who Pays for Car Accident Damage Caused by an Excluded Driver

    My question involves an accident that occurred in the state of: California

    My friend Juan has a roommate Darnell who is excluded from Juan's auto insurance. Darnell has his own car and insurance, although I imagine it was a relatively low cost policy. Juan was exhausted after a dinner together two night ago so he regretfully let Darnell drive his car home. Darnell caused an accident. He rear ended a car at about 25mph, and that pushed the car he hit into another car. All parties are apparently OK medically at this point, but airbags went off and Juan's $10k car is apparently totaled. Juan (who is sincerely beating himself up for this) is coming to terms with the fact that he will not be reimbursed for the damage to his car, which had a $5k loan.

    Will Darnell's insurance cover for the damage to the other vehicles and potential medical or other liabilities?

    I know you have a deductible for the damage to your own vehicle, but is there a deductible for the car(s) you hit?

    They are both struggling financially, but have been working hard to make ends meet. Juan owns a home. Darnell has no ownership in the home.

    Thank you if you have any advice and thoughts or words of caution I can pass along.

    Dave

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Who Pays for Car Accident Damage Caused by an Excluded Driver

    Darnell can check with his insurer to see what coverage he has. You pay a deductible when you make a claim. He can check his insurance policy to see what deductible he will owe, assuming he has coverage.

    If Darnell has his own car and insurance, why was Juan stupid enough to lend him a car he knew would be uninsured under his own policy with Darnell behind the wheel?

  3. #3
    Join Date
    Feb 2014
    Posts
    4

    Default Re: Who Pays for Car Accident Damage Caused by an Excluded Driver

    He was completely stupid. Like I said, he was exhausted and it was late. They were together, so he let Darnell drive. Paying for his mistake. Thanks for the response. Hopefully Darnell's insurance will cover for the damage to the other vehicles.

  4. #4
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Who Pays for Car Accident Damage Caused by an Excluded Driver

    What do you mean "excluded" from Juan's policy?

    Named Driver Exclusion or just not listed by name on the policy?

    PS: there is a difference between who "pays" and who is "covered."

    The driver who caused the accident "pays" if he isn't covered by liability insurance.

    I don't see Darnell's policy paying for his liability for a car he doesn't own based on the circumstances you describe.

    What does Juan's insurance company claim rep say about all this?

  5. #5
    Join Date
    Feb 2014
    Posts
    4

    Default Re: Who Pays for Car Accident Damage Caused by an Excluded Driver

    Darnell was a Named Driver Exclusion, which is why Juan is beating himself up, rightfully. And he's paying a dear price. Juan knows he will not get paid for the loss of his $10k car. I was also upset and worried the other night about Juan also being responsible to pay for the damage to the other vehicles, and any associated medical bills, if Darnell insurance doesn't come through on that front. I'm going to inform Juan that he needs to get direct clarification if possibly about Darnell's coverage and what Darnells Insurance company is saying. They have not had the best communication since the accident. They're both upset and in shock.

    Thanks for clarifying Pay vs. Covered. I appreciate the feedback.

  6. #6
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Who Pays for Car Accident Damage Caused by an Excluded Driver

    Quote Quoting dave_a
    View Post
    Darnell was a Named Driver Exclusion, which is why Juan is beating himself up, rightfully. And he's paying a dear price.
    Two big questions.

    Why the Named Driver Exclusion?

    Were Juan and Darnell drinking alcoholic beverages that night?

    Quote Quoting dave_a
    View Post
    Juan knows he will not get paid for the loss of his $10k car.
    Juan has the option of suing Darnell for wrecking his car.

    Quote Quoting dave_a
    View Post
    I was also upset and worried the other night about Juan also being responsible to pay for the damage to the other vehicles, and any associated medical bills, if Darnell insurance doesn't come through on that front.
    Under CA law, that Juan let a known uninsured driver drive his car would not subject Juan to liability for the damage and/or injury caused by Darnell.

    See the following CA jury instructions that explains how negligent entrustment works:

    http://www.justia.com/trials-litigat...i/700/724.html

    Which is why I asked those two questions and why they are so important.

    Because if Juan handed the keys to an intoxicated driver that might be negligent entrustment but if Juan handed the keys to an intoxicated driver who was excluded from the policy because of previous DUI then that would almost certainly be negligent entrustment.

    Now, the good part about that is that Juan's policy might have to defend and maybe pay on Juan's behalf because it is Juan's negligence that is being called into question and Juan is covered by his policy even if Darnell isn't.

  7. #7
    Join Date
    Feb 2014
    Posts
    4

    Default Re: Who Pays for Car Accident Damage Caused by an Excluded Driver

    Excellent information. Thanks Jack. I'll check out the link. No Alcohol involved. Just exhaustion that caused Juan bad judgement. I believe Darnell had an unpaid ticket that he disputed, or something similar to that. Darnell has a drivers license in good standing and his own car insurance in good standing. He was just an excluded driver from Juan's policy coverage. Thanks again for your thoughts. It's a great and generous service you provide.

  8. #8
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Who Pays for Car Accident Damage Caused by an Excluded Driver

    Quote Quoting dave_a
    View Post
    Darnell has a drivers license in good standing and his own car insurance in good standing. He was just an excluded driver from Juan's policy coverage.
    that doesn't make a lot of sense. You do not start listing people to list as excluded from your policy just because. Do Juan and Darnell live in the same residence? If not, it makes even less sense that Darnell would be an excluded driver.

  9. #9
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Who Pays for Car Accident Damage Caused by an Excluded Driver

    Quote Quoting dave_a
    View Post
    Excellent information. Thanks Jack. I'll check out the link. No Alcohol involved. Just exhaustion that caused Juan bad judgement. I believe Darnell had an unpaid ticket that he disputed, or something similar to that. Darnell has a drivers license in good standing and his own car insurance in good standing. He was just an excluded driver from Juan's policy coverage. Thanks again for your thoughts. It's a great and generous service you provide.
    OK. No alcohol on the night of the accident. That's good.

    But one unpaid ticket that results in a Named Driver Exclusion? My 35 years experience in the insurance industry says there's more to it than that.

  10. #10
    Join Date
    Jan 2010
    Location
    New Jersey
    Posts
    3,666

    Default Re: Who Pays for Car Accident Damage Caused by an Excluded Driver

    Quote Quoting jk
    View Post
    Do Juan and Darnell live in the same residence?
    Yes, they're roommates.

    1. Sponsored Links
       

Page 1 of 2 1 2 LastLast

Similar Threads

  1. Auto Insurance: Who Pays for Damage Caused by the Unauthorized Driver of a Rented Truck
    By jsauerbaum in forum Insurance Law
    Replies: 3
    Last Post: 02-13-2014, 06:58 AM
  2. Auto Insurance: Excluded Driver Caused Car Accident
    By Daewon77 in forum Insurance Law
    Replies: 2
    Last Post: 11-08-2013, 10:51 PM
  3. Auto Insurance: Car Accident Caused by Excluded Driver - How to Recover Damages
    By kai6 in forum Insurance Law
    Replies: 3
    Last Post: 01-23-2013, 11:32 PM
  4. Judgment Issues: Judgment For an Accident Caused as a Minor, Excluded Driver
    By MANUEL903 in forum Civil Procedure
    Replies: 2
    Last Post: 01-16-2012, 05:22 PM
  5. Auto Insurance: Excluded Driver Caused an Accident
    By nggarn9969 in forum Insurance Law
    Replies: 9
    Last Post: 09-22-2011, 05:40 PM
 
 
Sponsored Links

Legal Help, Information and Resources