I have a teen daughter. Last week she borrowed her friend’s car and while driving they met a vehicular accident. My daughter wrecked the car she borrowed. When that happened, her friend (who owns the car) was with her. Whose car insurance will pay for the damage? Also, how would this affect her teen auto insurance rate?
Ruth
Amarillo, TX
I am sorry for what happened. I hope all is well with your daughter.
Going back to your question, since it’s your daughter’s friend’s car that was involved in the accident and there was permission given to your daughter to use her friend’s car, your daughter’s friend’s auto insurance policy will shoulder for the expenses first. Moreover, your daughter’s teen auto insurance policy would pay for anything that the first auto insurance policy was not able to cover or anything that is in excess of the first auto insurance limits.
As to your second question on how this would affect her teen auto insurance, I’m afraid there is a negative impact. Normally, being involved in a car accident most especially if it’s her fault would result to an increased on her teen auto insurance rate. This is expected since this is a serious accident that resulted to total car wreck.
I would suggest you check with her auto insurance agent to know the increase on her rate. And also don’t forget to check with the insurance claims adjuster to find out on how much the damage on the car will cause to your daughter’s auto insurance.