My daughter who stays away from home, was visiting home and using my car. She does have a valid driving license though no insurance as she hasn't bought a car for herself yet. I have full coverage on the car and it is also registered in my name. She got into an accident outside the local supermarket, the other driver is at fault. Now his insurance company is refusing to settle the claim saying she was driving uninsured. Is this legal? Isn't my insurance supposed to cover my immediate family when they are driving this car? Thats what I was given to understand. Should I involve my car insurance company at this point? I live in PA, if it helps.
How does the other insurance company know your daughter was not insured to drive your car?
I would not report the claim to your insurance company yet if you consider the other driver at fault. Contact your agent/company and ask if your daughter, who does not live with you, is covered if she is driving the car with your permission.
Contact the other insurance company for the at-fault driver, and confirm that is the reason they are declining to cover the claim. If they still say the reason is your daughter was uninsured, contact Pennsylvania's state department of insurance to make sure it is a legal reason to decline responsibility for paying the claim.
I have heard of claims declined for this reason in rare situations, but it depends on your state law. Unless your daughter is specifically excluded by name on your auto insurance, I would be surprised to find out she is not an insured driver when borrowing your car with your permission, but it depends on the language of your auto insurance contract.
If you can get a free consultation with a lawyer experienced in auto insurance litigation, you may want to take advantage of it.
