Legal Question in Insurance Law in New York

Possible Law Suit from Geico

Months ago I lent my car to a friend who unknowingly to me let the car to her friend. Her friend got into an accident causing $6,500 to the other person's car. When I found out about the accident, in a panic I called the insurance company and asked them to drop the insurance effective the day of the accident, I did not want to have to explain the accident. I have no additional drivers listed on my policy to drive the car. Now Geico is trying to collect the money from me. Can I declare bankruptcy to avoid paying this money? Maybe I should have let the insurance stand, but I did not know how to explain someone else having an accident while driving my car and I did not want my rates to go up. Do I have any options?


Asked on 2/09/09, 11:23 am

1 Answer from Attorneys
jeffrey lazroe Jeffrey A. Lazroe attorney at law

Re: Possible Law Suit from Geico

Actually, the person who was driving the car may have had your permission to do so. It was not a stolen car. Even if a name isn't listed as a driver on an insurance, you are still covered under the circumstances.

I would call back your insurace company and ask them to pay or defend the claim.

Bankruptcy would be available to you. The cost would be around $1,300.00. If you have other debts, it might be the way to go.

If you would like to discuss the matter further, please feel free to contact me.

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Answered on 2/11/09, 10:53 am


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