What should I do if a car insurance company is asking for reimbursement?

My sister drives a car registered to me, but she insures the vehicle on her own insurance. I got a letter stating that there was an accident and I would be responsible. My sister said that the accident was minor and she settled with the other person privately. What should I do?

Answer provided by
Emily Maracle
Answered on Apr 21, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
“If the accident has been settled privately, there shouldn’t be a reason to submit a claim with a car insurance company. People typically settle privately to avoid having to report any minor accidents or submit small claims.
The best thing to do is get documentation of the private settlement and reach out to the other driver’s insurance company. As it is a legal notice, it’s important to respond and get as many details as you can.
Once you have a better idea of what happened, your sister can reach out to her insurance company to provide them with details. They may be able to help negotiate with the other driver’s insurance.”

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