Auto insurance question - suspended license driver

Here is the deal. I loaned my vehicle to my sugar baby. I thought she had a license. Well, it is suspended. She got rear end in a minor fender bender. Now, if I claim the accident on the other driver what happens? Will she be "at fault" since her license was suspended? What happens to my insurance rates?

Having or not having a license does not affect who is at fault in an accident. Not having a valid driver license or no insurance is a different issue. Treat this like any other accident and handle it accordingly.

Most insurance companies won't cover if the vehicle is being used during the.commission of a crime. Ie driving with a suspended license is a crime. Check with your insurance company for their policies.

My policy covers any accident BUT I believe there is a clause that excludes drivers without a valid license. Your policy may be different.

Time to find another sugar baby, one with a valid license.

Time to find another sugar baby, one with a valid license. Originally Posted by pyramider

A far better idea would be to find a sugar baby to whom you do not lend a car -- ever!

Don't loan cars to ANYONE!!! If a close friend is in need, loan them money to rent one ON THEIR OWN. You could lose much more than a sugar baby & a car if someone got hurt for more than your liability limits.

The accident should be covered by the other party's insurance if the facts are as straight forward as "rear ended her".

Your company may not even need to get involved. If they do, I suspect they'd wonder about your judgment loaning your car to someone with a suspended license.

If there is no police report and the other insurance company finds out your SB was driving on a suspended license I suspect they will refuse to pay, saying in effect she was equally at blame in some way.

Read this dissertation.

http://www.eccie.net/showthread.php?t=627119

Assuming this occurred in Texas, file the claim on the other parties insurance, and not yours. It will be covered and your vehicle will be repaired, there shouldn't be any liability assessed towards her just on the fact that her DL is suspended.