Yesterday, I wrote a new auto insurance policy for someone.   I did nothing out of the ordinary as I asked all the same questions I ask everyone when writing a policy.  An insurance agent has to ask the same questions and follow the same procedures when writing insurance policies, this is known as compliance. 

My new insured was not completely honest with me.

She, yes, she came back to my office the following day with a question.

She informed me that she was in a car accident and was rear-ended.  I asked, when was that accident?  She replied 2 days before I got new insurance from you.

She did not have insurance on the date of the accident.

Her question, will the other insurance company pay for my claim?

The answer to that is yes and no.  Yes, you have a claim for your vehicle, but no, you cannot sue for pain and suffering. 

You have no claim suing for non-economic damages.

This is a law adopted in 1996 by California and applies to both uninsured and drunk drivers. 

Also, the DMV, (Department of Motor Vehicles) will charge penalties such as fines and license suspension if you are involved in an accident without insurance.

The smart option is to have current liability insurance in place.

If you have a question about this topic contact your agent or this author.