I am sorry to hear this.
California Vehicle Code
16451. An owner's policy of motor vehicle liability insurance shallinsure
the named insured and any other person using any motor
vehicle registered to the named insured with the express or implied
permission of the named insured
, against loss from the liability
imposed by law for damages arising out of ownership
, maintenance, or
use of the motor vehicle within the continental limits of the United
States to the extent and aggregate amount, exclusive of interest and
costs, with respect to each motor vehicle, of fifteen thousand
dollars ($15,000) for bodily injury to or death of each person as a
result of any one accident and, subject to the limit as to one
person, the amount of thirty thousand dollars ($30,000) for bodily
injury to or death of all persons as a result of any one accident and
the amount of five thousand dollars ($5,000) for damage to property
of others as a result of any one accident.
Unless there was a valid provision in the policy that excluded coverage of the driver by name, it seems likely that the insurer is acting in bad faith by refusing to indemnify or defend the driver of the vehicle, who appears to be a co-insured under the Vehicle Code section above.
What is a "rated driver" as defined by the policy?
Are they refusing to defend or indemnify you, your son, or both?
Has the insurer filed a separate Court action to determine coverage?
Has the insurer stated in writing the reason for denying his claim? If so, please tell me what they told you.
Which coverages did you have?