Question:

Nearly a month ago, my friend was driving my car and rear-ended another vehicle.  The driver of that vehicle fled the scene of the accident.  I paid for the damages to my car out-of-pocket so the insurance claim was immediately closed.  When the police arrived at the accident scene, my friend informed me that he had no drivers license and asked if I would tell the police I was driving.  I was a little dazed from the accident and not using good judgement so I told the police I was driving and I was ticketed for driving recklessly.  I was uninjured, but my friend spent several hours in the hospital following the accident.  Having fully recovered, my friend now wants to file a claim against my insurance for his medical costs. I already pay my auto insurance in installments and can’t afford a price hike.  Is there anything I can do to stop him from making the claim?

Answer:

First off, honesty still is the best policy.  The fact that you were dishonest with the police certainly won’t help anyone’s claim and will likely muddy the waters.  And, because he was at fault for the accident, your friend does not have liability claim for his injuries.  However, if you have Medical Payments (or “Med Pay”) coverage on your auto insurance policy, he can claim reimbursement for his medical bills because he was in your car.  Also, if he has his own auto policy, he may be able to make a Med Pay claim there as well.  Under Med Pay coverage, he will not be able to make a pain and suffering claim but at least he can get his bills paid–up to the amount of your Med Pay (and probabaly his) coverage limit.