Auto Liability Insurance Indiana IN

Reader’s Question:

I have car insurance here in Indiana and I lent it to my uncle who caused hell of damage to someone else’s property and minor injuries to some. We both have coverage, so who will pay for the damages?

Othelia

Lafayette, IN

The accident that your uncle has caused brought about minor bodily injury and property damage to other people. Auto liability insurance involves two elements which are bodily injury and physical damage. For bodily injury, the driver’s car insurance policy provides coverage for the driver and all the persons along for the ride. The auto liability insurance of the owner of the vehicle provides coverage for property damage brought about by his/her vehicle. Auto liability coverage also protects against the amount for your legal charges in case you are taken to court; however, in case the maximum value of your liability coverage has been reached, the court may go after your personal assets to recoup the damage. Auto liability insurance will not cover the damages pass the limit in which you’re insured.

You and your uncle split the expenses of the car crash for the reason that he was the one who was responsible for it and this is commonly called “pro rata”. For instance, he caused $10,000 in property damage when he was driving your vehicle. You and your uncle have $25,000 each in property damage coverage so the total is $50,000. You would have to split the expenses in halves but at first, your car insurance coverage in Indiana would probably pay the whole costs. Then again, your insurer would “subrogate” or ask for payment from your uncle’s insurance to get his share.

Tags: auto insurance, auto liability insurance