Community Chat

[mima]

This is in Kansas. If Bob has a truck and lets his adult relative drive it as if it were their own, Bob pays the insurance and lists Mary (the relative) as the main driver. Bob only has liability. Mary wrecks the truck, no one else is involved, so we are assuming it is Mary's fault unless they find that the truck malfunctioned. Will Bob's liability insurance cover Mary's hospital bills?

Since he only has liability, maybe they won't pay any of the hospital bills? I don't know how it works.

All fake names, but a true story. Please don't tell me to mind my own business in the matter, because it is my business.

I'm sure we will find out when this is over, but just curious.

Of course, this might vary policy to policy or state to state maybe.

[mima]

OK, I should have googled first. I just googled and the way I read it, if you have liability only, it won't pay Mary's medical bills. If that is the case, I'm assuming Mary will be responsible for the medical bills. Right?

I'm talking to myself. LOL Just trying to figure this out.

[Bird mama]

Mima, you are not talking to yourself. I needed a second cup of coffee to help me think.

[RedTop]

I would think that if the accident is Mary's fault, she should use her medical insurance to cover her hospital expenses. However, my liability coverage lists an amount for bodily injury and property damage, but I would think that is to cover who, or what you damage, not to cover yourself, or the person driving your vehicle.

[Bird mama]

I realize Michigan and Kansas are different states and the auto insurance provisions in a policy can be different.

In Michigan, when you don't have theft or damage insurance on your vehicle it's called no-fault. The purpose of no-fault or liability insurance up here is to cover injuries/damages sustained in an accident. If you think about it, the insurance company is not fixing or replacing Bob's truck so what is Bob paying for?

Now, if Bob owns the truck, but Mary is listed on the policy as the primary operator of the vehicle, I cannot imagine why Mary's injuries wouldn't be paid for. If Mary was not listed on the policy, I could see the insurance company getting wiggy because then she would be what we call up here - an uninsured driver - which we also have provisions for with no-fault law.

[mima]

On 7/18/2014 RedTop said:

I would think that if the accident is Mary's fault, she should use her medical insurance to cover her hospital expenses. However, my liability coverage lists an amount for bodily injury and property damage.

I think that amount is for the other people and their property, not you. Maybe I'm wrong.

Mary doesn't have medical coverage, that's why there is a concern.

Bob thinks his insurance will cover her and I don't think so. Bob is scared the hospital will sue him for the bills. I think they will go after Mary, not Bob.

[mima]

On 7/18/2014 Bird mama said:

I realize Michigan and Kansas are different states and the auto insurance provisions in a policy can be different.

In Michigan, when you don't have theft or damage insurance on your vehicle it's called no-fault. The purpose of no-fault or liability insurance up here is to cover injuries/damages sustained in an accident. If you think about it, the insurance company is not fixing or replacing Bob's truck so what is Bob paying for?

Now, if Bob owns the truck, but Mary is listed on the policy as the primary operator of the vehicle, I cannot imagine why Mary's injuries wouldn't be paid for. If Mary was not listed on the policy, I could see the insurance company getting wiggy because then she would be what we call up here - an uninsured driver - which we also have provisions for with no-fault law.

I thought liability insurance would be for if Mary hit someone else and did damage to them, Bob's insurance would pay for the other people but not Mary. I hope you are right in this.

[Bird mama]

Mima, I have a relative who carries just no-fault or what you call liability insurance on her car. Her insurance company recently questioned her about having health insurance. She is currently uninsured and her no-fault auto insurance policy premium increased as a result of it. That prompted me to call my auto insurance agent (different company) to ask if that was something new (asking if people are covered by health insurance) as the result of PPACA. My agent said that auto insurance (even just no-fault) is more expensive when the insured person (on the auto policy) does not have health care because the auto insurance bears the total cost of any injuries. This was within the last 2 weeks - so that's why this is fresh in my mind.

[Bird mama]

Mima, do you know the insurance company? If I am asking you something this personal I will share my insurance company info. My family member has allstate and I have state farm.

[Bird mama]

Okay, going off tangent here but also learned something distressing when I was on the phone with my agent. Up here, when you get Medicare coverage, I can look forward to my car insurance going up as Medicare does not coordinate coverage for auto accidents. All my life, my insurance agents have sung that song that don't worry Bird, your insurance will go down when you get older. Or don't worry Bird, when you move to a better neighborhood your insurance will go down. I'm 52 and not a menace to society when behind the wheel and my insurance just keeps going up. In Michigan, you don't get any relief for auto insurance.