My girlfriend and I have a second car we don't use (2000 Mazda Miata). In the state of AZ, every registered car needs to have insurance so we put the car under our policy with the bare minimum coverage. Her brother has been driving the car for months now paying us what he can each month to buy the car. Well today he rear ended a MINI in California. Now, he doesn't have insurance (even though we told him it was a must). The car is insured by us. He is at fault. Any idea what will happen? He gave the other driver our insurance information. Everything I research says the driver is at fault (her brother) and that the drivers insurance will cover damages but he doesn't have insurance. I'm worried that his careless driving will now make my rates go up and I will have to pay the deductible to repair this other guys MINI. I have done some research and the guy he hit, his insurance may go after her brother and not our insurance since we were not driving. I'm hesitant to call my insurance, and cant because I'm stuck at work. All I care about is if this is going to affect my insurance since the car is under my name. I don't care to repair the Miata, from the pictures it seems like a total loss.

Any thoughts? I have never been in an accident so this is all new to me.

You're in a pickle I think. He's gonna file a claim on his own insurance due to your driver having none. His insurance is then going to go after your driver and the owner of the vehicle (you or whomever holds the title) to recover damages.

Id have a conversation with my insurance company - do you have a local agent? They're going to find out at some point - get ahead of the situation.

It really depends on what your state's laws are regarding this, but in some states the other guy can go after either the driver's policy or the car owner's policy. So in your case, since the driver has no insurance, your policy could possibly be utilized to cover the damages. This is an excellent question to ask your insurance company, they would know exactly what's the deal.

I think it is best you be straight forward with your insurance, there's no sense in trying to hide it and they will also eventually find out, which would make matter worse. One thing you need to discuss with your girlfriend and figure out is, if you are going to tell your insurance whether or not her brother was authorized by you to use the vehicle, this will probably make a big difference on whether or not you are penalized for this incident.

I hope you are able to resolve this matter quickly and painlessly, good luck!

I think it will more likely depend on California law. In any case I would expect your insurance company to fight tooth and nail to avoid paying out for him. Don't be surprised if they cancel on you for allowing an uninsured driver to operate your vehicle.

The other driver's insurance will pay out and then go after the driver and/or your insurance company. If he has no assets it will be pretty fruitless but they will still get a judgement and then pursue your policy.

I called my insurance company and put in the claim. They said the other guys insurance didn't contact them yet. The lady I spoke with couldn't really answer a lot of my question, but it seems the agent will be able to tomorrow. I figured it would be best to stay ahead of the game as said here and else where. Hopefully we don't get burned for this. With a mountain of student loans and a shitty low wage job this is the last thing I need. Ahh!

Keep your head up - these things happen. Remember, don't let the stumbling blocks beat you up, but DO learn a lesson from the situation.

I know my policy will cover anyone over the age of 25. But you need to talk with you agent to make sure.

Did your bare minimum liability coverage include uninsured motorist protection? Not sure if it was meant to work quite like this, but i dont see why it wouldnt work...

I think the way that uninsured motorist protection works is when you are in a predicament where you are hit by someone else that has no insurance (or the guy ran and you never got his insurance). Then this insurance comes into play to cover your vehicle, you and your passengers, and without penalty against your driving record.

I found this out the hard way when I was involved in a pretty bad hit and run accident on the highway (no I was not the one running away). My insurance took care of me completely and without affecting my rates, thank goodness for that extra line of protection.


@4Runner4TW , glad to see you ended up calling them...unless you just have a horrible heartless insurance company, I'm sure they will be more understanding than not. Don't worry too much

Who actually has title and registration of the vehicle ... You or the GF?

If the answer is her then her policy may go up and she may even be liable in some other way. Whoever actually owns the car really screwed up here. Legally married and GF you live with are two totally different things. In the eyes of the law she is no more than a roommate.

Sorry to call you out but it was a giant mistake to knowingly let an uninsured driver use you vehicle, possibly in violation of the states legal code.

Common law = legally married in the eyes of the law, local state laws will determine when that happens. Here in Canada it's 12 continuous months of living together and you're considered common law.

Good move getting your insurance involved early, gives them an opportunity to get a read on the situation, and prepare you for what's coming, so you can decide how to proceed.

You say your GF's brother had been paying you money towards the purchase of the car, I say that money is now earmarked for any expenses you incur as a result of this, hopefully it was a decent chunk at the time of the accident.

Well, nothing has really happened so far. Basically, my insurance is trying to cover her brother, but said they may not be able to. In which case the person who he hit will need to go through his own insurance or take her brother to small claims court. From my talks with my agent, she said we are not liable for the damages.

However, my girlfriends great aunt who helped build the company Mary Kay heard about what happened. She has been unable to drive her 1987 Cadillac Elderado (I believe thats the year) for the past 2 years. We actually drove it about 3 years ago when we saw her last. She decided to gift the car to my girlfriend! Doesn't sound like much but it is white on white with about 50,000 miles if I remember correctly and always garage kept. It was given to her great Aunt by the CEO of GM at the time. It was only a production ready concept car at the time so I'm really curious to see the VIN. The car means a lot to her and the family because of the whole story behind it so it looks like we have a new weekend cruiser again. This time no one gets to drive it but her and I. We learned our lesson.

@IanB
Common law marriages do not exist and are not recognized by the courts in AZ. I don't think they should exist anywhere but hey that is just me.


FYI - In The United States:

The law in Canada sounds incredibly stupid to me.

Since the OP never explained who actually owns the car or answered my Q ..... We shall never know but I am glad to at least hear it all (whatever it was) worked out for you.

@BrianSD_42 You'll get no arguments from me. Someone's living arrangements should play no role in their marital status.