“Assuming you aren’t listed as an excluded driver on the policy, the insurance your sister has on her car should apply. Although it’s only liability insurance
, it will cover any damages to another person’s vehicle or property. The only time you’d need to pay out of pocket is if the damage exceeds the policy’s limits.
However, since your sister doesn’t have collision coverage
on her vehicle, you will need to pay out of pocket to have her car repaired.
Your family’s rates could increase after submitting a claim. Insurance companies rate policies based on a number of factors, including claims and accidents.
If you want to avoid a rate hike, you can try settling the matter privately with the other driver. You can see how much the other driver’s repairs will cost and decide what to do.