Reader’s Question:

I know that you should add someone in you insurance policy if they use your car more than regularly. But what are the consequences of them being involve in an accident and not having them listed on your policy? I have a friend that borrows my car, and we are living in the same household but if I add him to my insurance policy, my insurance rate goes up a lot and its so unreasonable! We live in Atlanta GA and I would like to know what will happen if he damages my car and he is not added to my policy?

Mike

Atlanta, GA

Generally, the consequences of not adding a household member to your insurance policy when it is required by your insurance company is that if he get involve in an accident while using your car they would deny claims since he was not a motorist on policy and therefore you were not paying premiums for him to covered to drive your car. We have heard of some insurance companies that will cover a household member that was not listed on the insurance policy.

Most insurance companies and state laws require you to add all licensed household members on your policy and either add them as motorists or exclude them. It does not appear that in Atlanta GA you could totally exclude your roommate from your policy, only from collision and comprehensive coverages.

Georgia law states that car insurance fraud happens when people knowingly misrepresent pertinent facts to an insurer or agent to get a policy or collect money to which they are not entitled. Removing a licensed household member from your insurance policy is a misrepresentation of facts and is considered soft fraud. Any form of car insurance fraud is a serious crime in Atlanta GA that can lead to possible jail time and heavy fines.

Reader’s Question:

My brother’s vehicle was hit while parked on a street in Atlanta, Georgia. There was no witness and he is filing a claim with his insurance company. In the state of Georgia, is there a maximum deductible allowed for hit and run claims?

Polly

Atlanta, GA

According to the Georgia Department of Insurance (DOI), Uninsured Motorist Insurance may be included on an insurance policy. Although Georgia requires all motorists to have “liability insurance” to operate a vehicle, there are unfortunately those that either do not abide the law or may have unknowingly permitted their insurance to cancel.

For injury to or destruction of property of the insured, deductibles of $250.00, $500.00, or $1,000.00, at the choice of any named insured in the insurance policy. Subject to the approval of the Commissioner, deductibles above $1,000.00 may be offered, .

If your brother is filing a claim for the damages he sustained in Atlanta GA under collision and not Uninsured Motorist Property Damage (UMPD), then verify with the GA DOI to find out if there is a maximum deductible allowed since the damage is from a hit and run accident.