Legal Question in Insurance Law in California
Auto Insurance Question
My daughter�s roommate asked my daughter to give the roomate�s brother a ride to Jamba Juice. My daughter�s roommate gave my daughter permission to use her car and handed her the keys. On the way back from Jamba Juice my daughter hit a pole and did damage to her roommates car.
Her friend�s father now wants my daughter to pay the $1,000 deductible to get the car fixed. My daughter offered to pay half the deductible ($500), but the father did not take it. He wants the entire $1,000.
He is now taking her to small claims court to get the $1,000.
Is my daughter legally liable for the $1,000 deductible?
2 Answers from Attorneys
Re: Auto Insurance Question
Yes, unless she somehow wasn't at fault. Your question strongly suggests that she was.
If the roommate's car didn't have collision insurance your daughter would be liable for the entire amount. That the car had such insurance doesn't relieve her of that liability, even though the insurance company will send a check to the roommate for part of the cost.
Not only must your daughter cover the deductible, she may very well have to reimburse the roommate's insurance company for the amount it pays to her. Insurance companies do not have to absorb the cost of a claim for which a third party is at fault; if they had to pay a significant sum they will probably try to work something out with your daughter. If that fails, they will probably sue her.
Your daughter needs to tell her insurance company about this accident ASAP. The insurer may have to pay for her defense and for the damage she caused, but the longer she takes to notify it the more likely it becomes that the company will deny her claim due to her failure to report the accident promptly.
Re: Auto Insurance Question
In short--yes.
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