Legal Question in Insurance Law in California

Vehicle accident on test drive

I was in a n accident on a test drive. The dealerships insurance paid for damages on the vehicle but they are now comming after me to repay them in full.

I was found at fault and cited on the scene of the accident. My question is do i have to repay the insurance company if the vehicle was covered and the dealership had allowed me to use the vehicle wouldnt it be on the dealership and not me?


Asked on 9/09/08, 4:47 pm

2 Answers from Attorneys
Edward Hoffman Law Offices of Edward A. Hoffman

Re: Vehicle accident on test drive

If the accident was your fault then you are liable for it. That the insurance company paid the claim doesn't absolve you of responsibility -- it just means that your payment will end up in the insurer's pocket (as reimbursement for what it paid out) rather than the dealership's. After all, the insurance is there for the dealership's protection, not yours.

Read more
Answered on 9/10/08, 4:13 pm
Steven Murray Steven W. Murray, APC

Re: Vehicle accident on test drive

I don't think so. In California permissive users of vehicles are required to be insured under an owner's policy. Under Ins. Code Sec. 11580.1(d)(2), you would be an insured under the dealer's policy to the extent you had no other insurance (such as on your own vehicle) up the the sum of $5,000 for property damage.

If you have other insurance, turn the claim into them and they will handle this. If no other insurance is available, you have a defense that aninsurer cannot subrogate against its own insured, i.e., at least to the sum of $5,000, and maybe for the whole claim, the insurer may not lawfully sue you.

Read more
Answered on 9/10/08, 4:46 pm


Related Questions & Answers

More Insurance Law questions and answers in California