Importance of Adequate and Right Type of Coverage.

[xrac]

A friend of mine works for a used car dealer. Tuesday a guy was test driving a late model BMW 325i (I think) twin turbo rear wheel driving when unbeknownst to the dealer he put his girlfriend behind the wheel. She had never driven a rear wheel drive and there was light rain. She got on it and it fishtailed. She then tried to hit the brake but instead hit the accelerator. She went off the road into another used car lot and hit 9 more cars. The BMW and 1-2 cars in the lot are totalled. The total of this accident can be well over $100K.

I just hope the girl has adequate insurance if not this could be really nasty. If she has Indiana minimum coverage $25,000/$50,000/$10,000 then we have a problem. I know it would come back on the used car dealer's coverage. However, in a situation like this am I correct in assuming that the used car dealer could potentially sue both the boyfriend and the girl if the girl's insurance coverage doesn't pay?

 

[djs]

Dealers insurance will be primary in this case.

To both dealers, this is a win. They just sold 3 cars No financing problems.

The gal is likely on the hook for the dealers deductible though, which can be as high as $5000 without even thinking about it.

 

[xrac]

Dealers insurance will be primary in this case.

To both dealers, this is a win. They just sold 3 cars No financing problems.

The gal is likely on the hook for the dealers deductible though, which can be as high as $5000 without even thinking about it.

The problem is a few weeks ago this dealer had a very high end 2013 sports car being driven back from auction in Nashville. Driving late at night and probably sleeping the guy driving the car T-boned a van with a family. Totalled the car and put the family in the hospital. Their insurance company immediately dropped them and so now this with the new company. So it is definitely not a win for the dealer.

 

[VolAgent]

The problem is a few weeks ago this dealer had a very high end 2013 sports car being driven back from auction in Nashville. Driving late at night and probably sleeping the guy driving the car T-boned a van with a family. Totalled the car and put the family in the hospital. Their insurance company immediately dropped them and so now this with the new company. So it is definitely not a win for the dealer.

That is some bad luck, or a real lack of care on the part of the dealership when it comes to employees and letting people test drive their cars...

 

[xrac]

That is some bad luck, or a real lack of care on the part of the dealership when it comes to employees and letting people test drive their cars...

One or the other or some of both.

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Dealers insurance will be primary in this case.

To both dealers, this is a win. They just sold 3 cars No financing problems.

The gal is likely on the hook for the dealers deductible though, which can be as high as $5000 without even thinking about it.

The guy who had all the cars hit should do really well. Buy low sell high!