Question for the insurance people...
10-14-07, 10:28 AM
#1
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Question for the insurance people...
I got a question for you guys...
I'll try to keep this short but I'll need to give the background info first.
This was two of my friends the owner of the vehicle (we'll call him X) and the driver of the owner's vehicle (we'll call him Y). Y was driving X's car and got into an accident in which the car was substantially damaged so they will be getting repairs via insurance claim. There was no report taken as Y didn't hit anything, per se (hit like the side of a mountain or something), and the CHP said it's not necessary to do the report unless they just wanted it for some reason.
- So Y know he's going to have to give his statement to X's company (AAA), but if wondering if if/when AAA asks for Y's insurance info, does he have to disclose this and if he doesn't (or says he does not have insurance) is there a way AAA could find out (that he has insurance AND owns a vehicle)?
- Will Y's insurance premium be increased by this accident even though there is no CHP report and will X's as a result of this claim?
I was told in the past that the driver did not need to disclose their information (insurance wise) if the car driven has full coverage - any truth to this? I'm not sure if this is true or not, and I know there are some insurance people on here so I thought I'd ask here... As you can imagine both parties, want to mitigate losses and consequences to each other so they're just looking for the best course of action. Thanks for bearing this long post.
I'll try to keep this short but I'll need to give the background info first.
This was two of my friends the owner of the vehicle (we'll call him X) and the driver of the owner's vehicle (we'll call him Y). Y was driving X's car and got into an accident in which the car was substantially damaged so they will be getting repairs via insurance claim. There was no report taken as Y didn't hit anything, per se (hit like the side of a mountain or something), and the CHP said it's not necessary to do the report unless they just wanted it for some reason.
- So Y know he's going to have to give his statement to X's company (AAA), but if wondering if if/when AAA asks for Y's insurance info, does he have to disclose this and if he doesn't (or says he does not have insurance) is there a way AAA could find out (that he has insurance AND owns a vehicle)?
- Will Y's insurance premium be increased by this accident even though there is no CHP report and will X's as a result of this claim?
I was told in the past that the driver did not need to disclose their information (insurance wise) if the car driven has full coverage - any truth to this? I'm not sure if this is true or not, and I know there are some insurance people on here so I thought I'd ask here... As you can imagine both parties, want to mitigate losses and consequences to each other so they're just looking for the best course of action. Thanks for bearing this long post.
Last edited by 92 SC400; 10-14-07 at 11:01 AM.
10-15-07, 08:49 AM
#2
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This information is based on NJ insurance regulations, CA might have different laws set in place
If the insurance company has a name other than the insured's Mr. X, they will also require a license number. Once that occurs the insurance company will find out the Mr. Y does have an insurance policy and it is their right to after it (subragation), if they choose to do so (i.e. the extent of the damage is above the policy limits). If Mr. X why does not choose to reveal Mr. Y was driving, his insurance will go up and he will be charged as an at fault accident. Once Mr. X gives up Mr. Y information, his policy premiums will not go up substantianly, very minimal if at all, but they will research the Mr. Y does not drive the vehicle frequently. Mr. Y insurance will go up as he is now considered to be liable in at fault accident.
If the insurance company has a name other than the insured's Mr. X, they will also require a license number. Once that occurs the insurance company will find out the Mr. Y does have an insurance policy and it is their right to after it (subragation), if they choose to do so (i.e. the extent of the damage is above the policy limits). If Mr. X why does not choose to reveal Mr. Y was driving, his insurance will go up and he will be charged as an at fault accident. Once Mr. X gives up Mr. Y information, his policy premiums will not go up substantianly, very minimal if at all, but they will research the Mr. Y does not drive the vehicle frequently. Mr. Y insurance will go up as he is now considered to be liable in at fault accident.
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