Archive for June, 2010

What if a Friend or Family Member caused the Collision?

What if a family member or a friend caused a collision where I was injured and I don’t want to claim against them.

The first thing to keep in mind is it isn’t personal. Insurance is there to cover losses caused by people’s mistakes. As long as there is valid insurance coverage, a claim can be made and the insurance company can pay.

The claim may change what the at-fault person pays for insurance. Unless the person breached the policy by doing something wrong such as driving while impaired, he won’t have to pay anything.

Also, if the person doesn’t have enough insurance, he will have to pay for any amount over the insurance they have. For example, if a person has third party liability insurance of $200,000 (the minimum in BC), and a court awards $300,000 because of the injuries suffered, the insurance company will pay out $200,000 and the person who caused the collision will have to pay the additional $100,000.

I always suggest people carry at least three million dollars worth of third party liability insurance as there are many claims that go over a million dollars.