Resident Insured's Car Damaged by Named Insured

December 11, 2012

A named insured's adult son currently resides with his mom. He has his own vehicle and auto insurance all in his name only. One morning the mom backs into her son's vehicle and damages both cars. Her carrier pays for her damages and her son's carrier pays for his damage and then subrogates against the mom's carrier. The mom's carrier declines/denies the subrogation claim.

We have contacted several other carriers who have indicated that if they were the mom's carrier, they would pay for the son's damage. However, the mom has a proprietary form which reads: There no coverage for an Insured for damage to property while it is: Owned by, rented to, used by, in the care of, or transported by you, a resident relative, or the person who is legally liable for the damage.

Based on the above language, there would be no coverage under her policy for damages she did to her son's auto, correct?

Vermont Subscriber

We do agree. The language in the exclusion you cite makes the exclusion very expansive. It would prevent coverage for the mother in this instance. She is the insured and there was property damage to property owned by a resident relative (the son living with her), so this exclusion fits that situation.

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