Legal Question in Insurance Law in California

My daughter who was 17 at the time drove her older sister's car and hit a parked car. My older daughter only had a liability insurance but the insurance rejected the coverage to the other party because they said it was driven by her sister who lives in the same house. The insurance company then had cancelled my daughter's policy and returned full premium which she had for 2 months. Reason was that my daughter had lied on her application. So the other party's insurance could not collect from the insurance company for damages so they sent to collection agency. And now the agency has been coming after me on behalf of my daughters. Can they do that? Can they come after my daughters or myself? My daughters are now 18 and 22 and no longer living with me.


Asked on 1/31/12, 8:12 pm

1 Answer from Attorneys
Roy Kohler Law Offices of Roy Kohler

Your older daughters insurance company may be acting in bad faith. What lies did your daughter allegedly tell her insurance carrier? Were those alleged statements material to coverage?

In any case, your older daughter presumably loaned her car to her younger sister. You did not control or permit such a loan. Your older daughter was an adult at the time of loaning the car to her sister. She alone may have some responsibility for her younger sisters conduct, not you.

Write a letter to the collection agency and send by certified mail, receipt requested, demanding they no longer contact you regarding this matter or continue to pursue you for this debt.

Good luck.

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Answered on 2/01/12, 4:35 pm


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