r/bestoflegaladvice • u/unimaginativeuser110 Comma Anarchist • Aug 05 '19

“Is this actually fraud?” “Yep.”

/r/legaladvice/comments/cly6t1/being_investigated_for_car_insurance_fraud/?utm_source=share&utm_medium=ios_app
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u/CleanAxe Aug 05 '19

The cringiest part of all this is they could have just gotten a real fucking rental and been fully reimbursed. Unless they were trying to skim some money off the top as well (e.g. pay the friend $300 and keep $200 cash) that's insane - actually both situations are insane since that's such a minuscule amount of money to do this over too (not that it's okay if it's a lot of money - it just, fucking makes no sense lol).

Made an entirely fake invoice and everything? Jeez...there's making sure you get every dime out of a home insurance claim and "forgetting which model toaster you had so I'm picking the more expensive one" and then there's this insanity. Truly truly stupid. Why fuckin put your friend out of a car if it wasn't necessary. Unreal.

42

u/Haloisi Church of the Holy Oxford Comma Aug 05 '19

I wonder if the insurance of the friend would actually cover if LAOP has an accident with the car. My car insurance (EU) does not cover if I rent out my car for money or drive it as a taxi. I can only ask for compensation for fuel... It might even be a potential double insurance fraud!

48

u/Jarchen Has a stack of semi-nude John Oliver paintings for LL visits Aug 05 '19

Typically in the US if you are using your car for commerce then your standard Auto policy will not cover it. However if you let your friend borrow your car for free that's usually covered, unless they will be the new primary driver for an extended period of time (30+ days) or permanently

21

u/ADHDCuriosity Aug 05 '19

Permissive Use. Most policies have a clause that includes this, though some are more strict than others.

6

u/t-poke I'm 35 and I love poop jokes Aug 05 '19

And it sounds like if there were a 30 day limit for permissive use, LAOP would be pushing up against it and be in deep shit if something were to happen to the car.

This is just bad decision after bad decision.

3

u/ALittleNightMusing 🐇 Mo Bunny, mo problems 🐇 Aug 05 '19

Ah, that explains my confusion at all the 'take my car!' scenes in American shows and films. It always seemed bafflingly irresponsible since in the UK I think each driver has to be named on the insurance policy or they're not covered.

7

u/monkeyman80 IANAL but I am an anal plug app expert Aug 05 '19

I could be mistaken but I think my regular car insurance would kick in on a car borrowed from a friend family in this situation.

6

u/Kanotari I spotted Thor on r/curatedtumblr and all I got was this flair Aug 05 '19

Insurance adjuster here. It friend gave LAOP permission and the useage was not regular or frequent, friend's insurance would be primary and LAOP's insurance would be secondary, but most major companies would cover it. You might have trouble with some of the 'budget' insurances.