If your daughter's car was totaled by an unlicensed driver running a stop sign can the insurance company refuse to pay because the car was insured under her mother's name?

The company will not admit liability....but they may still pay. If the unlicensed driver was operating the car with the parents permission...the parents are liable. The parents are liable for the actions of any minor child...so if the child is young and I mean not driving age...they better get the company to step up and pay whats fair to you. If the parents say...No we did not give permission, you don't give up...get a lawyer and take them to court. Doing so brings in the insurance company...and it will get settled. I know of parents who excluded the daughter, or son from their policy...exclusions are written agreements , signed at the insurance company , that the parents don't want a driving aged kid coverd by their insurance. ( The rate is cheaper-No kids) Later the parents let the kid get a license, and routinely let the kid drive the cars...exclusion still in effect. CRASH goes the kid...The company does not owe for even the collision damage to the parents fully covered auto...because the kid did it...and the exclusion states they are not liable for anything the kid does...HE IS EXCLUDED FROM ANY AND ALL THAT THE KID DOES. The Parents Owe...they knew, they let the kid. SO, Take their house, the boat , the summer cottage, and whatever else it takes to cover what they owe. Don't get your hopes up, if the parents say the driver did not have permission, you probably won't win in court period. The policy is pretty specific about this and people driving the vehicle without permission are not covered period. You may have a hard time finding a lawyer to take the case. Best bet is to have your own insurance pay under Uninsured Motorist coverage. Claims under this coverage should not be held against you and your rates should not go up.

Your insurance company should pay you for the total, assuming you had comprehensive/uninsured motorist coverage. Let them battle it out with the other party's insurance company, it's not your problem. That's why you have insurance!