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totaled vehicle by unauthorized driver

by Randy

My 2006 Mustang GT was taken by my 18 year old son without any permission last night. We still owe money on the car. My son & his friend totaled the car. We have filed a claim with our insurance.

Our son is not insured on the vehicle. He is listed as excluded. The financial institution that we owe for the car is listed on the policy. No bodily injury or property damage other then the car. Can I expect the insurance company to pay off the totaled car minus deductions, etc...? On my policy the exact wording on my policy is as


Driver Exclusion Endorsement: No insurance is provided by his policy while any automobile is being driven by or is under the direct control of (my son's name) . This provision shall not affect the right of recovery of the loss payee, if any, named in the declarations .

Thanks for your help


Hi Randy,

Wow, I am sorry to hear this. Kids something’s can do things and not measure the consequences.

It is very difficult to give you a straight answer without reading the entire policy. There might be conditions, exclusions, and exceptions to those exclusions.

Generally speaking, once a driver is excluded, then the insurance company will not make any payments to anyone because of a car accident. However, some states and jurisdictions are beginning to enforce financial responsibility clauses in insurance companies.

They are most used in property damage to homes. No intentional damage or loss is covered, but for example if one burns one's own home, most insurance policies would still have to pay the mortgage company anyway.

Some polices are starting to do this in the auto policy. Per the language that you gave me, it would appear that the loan for the car would be secured.

However, if the car is not a total loss, they might not fix it. Sounds like it is a total loss. This is the only coverage that they would afford to you. No medical bills, no damages to other people, and no coverage for any liability for bodily injury to anyone else and/or passengers.

Again, this is a general answer and without looking at the text is very hard to decide.

Talk it over with your insurance company and see. It would appear that the loan is covered.

Good Luck, and I hope the beginning of next year is better for you and your family.

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