I have a question (sadly, from a very recent experience) about what happens if you damage/total a car you just bought.

I've been told that if you buy a car, your current insurance covers it in exactly the same manner as your other vehicle(s) on your insurance policy until you have everything moved to your name and straightened away (up to 30 days).

Can anyone confirm this? Is it a legislated rule (ie, government imposed) or is it dependent on the insurance company policy only?

I'm with Farmers, if that makes a difference to anyone that might have experience with them.

I haven't had a chance to really sit down and talk to them due to moving and also trying to put the wrecked vehicle in storage back in Oklahoma.

Now, to put a wrinkle into the scenario, I had my insurance company add the vehicle to my policy (although I did not yet own it) on Friday. They put it on as liability only. What takes precedence - the standard coverage on my policy (full coverage) or the coverage that was added prior to purchasing the vehicle (liability only)?

Thanks in advance,

Jonathan

 

Wow, Jon. What a mess. I would highly recommend calling the insurance company ASAP. I believe the 30 day grace period is standard, but I could be wrong. I would imagine they could fix you up, but I would get the ball rolling very, very quickly. Why did you put it in storage and wait? How did the car get wrecked? Did you drop it upside down off a moving trailer or something? You should always call the insurance company immediately after an accident to get everything recorded.

 

Corey,

It was a 1988 Porsche 944 Turbo S (moderately modified - 276 whp, 301 ft-lbs torque - and in cherry condition). It hydroplaned and spun twice, knocking out a light pole and a short section of guardrail.

I put it in storage to keep it from being stripped. I didn't trust the wrecking guy that towed it initially, even though he stored it inside. He was also charging me $25 a day to keep it and I knew it'd be another week or so before I got back again so I put it in storage for the same amount.

I did call insurance immediately and they said to call back when I could talk. I haven't had a chance to talk in three days, due to moving and trying to take care of the car for my Dad (it was his car!). My wife actually spoke to our insurance company a bit and they said they would NOT reimburse us for the car. However, based on previous experience with insurance companies, they aren't always up front or honest unless pressed.

 

Jon,

What a bummer man, I'm really sorry. If you were driving your dad's car, then your insurance will cover the loss if you have collision/comprehensive on your own vehicles. That's ridiculous that the insurance told you otherwise. Did you buy your dad's car or were you just driving it?

I would recommend reviewing your policy, but I am almost 100% sure that you're covered up to your policy's limits if you're driving your car or someone else's car.

 

Jon,

Sorry to hear about the wreck...

Just for future reference, I always call the insurance people before I drive it off the lot. If nothing else, it gives you a paper trail that the insurance knows about the car and when you picked it up.

It saved me a lot of trouble about 10 years ago when a car I just bought was hit by a hail storm 6 hours after I bought it. The phone record made it real easy to make the claim.

 

I thought in most cases it's only comp for your car and liability if you're driving someone elses car. Or maybe you have to pay more to make it comp on any car you drive

 

Why hasn't anybody addressed this part:

I'm not an insurance agent, not even close... I'm just taking a logical approach to this:

I don't know much about insurance but I think this is where you're going to get screwed. I mean, it shows that you put effort into getting insurance coverage so that 30 days to get a chance to get your insurance sorted out doesn't matter since you've already delt with your insurance coverage.

Everybody else is asking if it's your car on your insurance or whatever, but in that statement you said you put it on YOUR insurance so it's going to be covered by your insurance policy no matter what, it doesn't matter what coverage you have on driving other people's vehicles.

Now, on your policy it was put as liability only... so the real question comes down to: why? Did they screw up? Even if they did, can you prove that they screwed up and put it as liability only... otherwise it may seem that you're trying to screw the insurance company by saying they screwed up when you really told them liability to begin with (not saying that's what happens, just what it may seem like if you can't prove that it shouldn't have been put as liability only). If you can't prove that they screwed up then your best argument is going to be the value of the car "Why would I put a vehicle valued at $X under liability only?"... of course if the value is low then it may hurt your argument. You need to get in direct contact with your agent and get that liability only issue taken care of because that seems to be the snag.

Just my $0.02...
-Doug

 

Okay, to answer a few questions.

1. The car is in my name. I purchased it. It was/is for my Dad - he gave me the money for it - but the car is in my name for now. He was supposed to pick it up in late spring when he got a break from working.

2. I did attempt to get coverage myself. My wife actually set it up and she DID know that it was liability only. She just didn't realize that it meant that the car itself wasn't covered in case of an accident (and she neglected to tell me that we only had liability on it - I wouldn't have driven it had I known that).

3. There still remains the question of whether or not I can add someone else's vehicle to my insurance policy, and also if that takes precedence over my 30 day period of full coverage per my normal insurance policy.

Thanks for all the replies.

 

I don't get your point in number 3: The vehicle was in your name, legally it is your vehicle, not somebody else's... it doesn't matter who it's for or even who paid for it, if it's in your name it's your vehicle.

And like I said, that 30 day grace period is so you can have time to get insurance put on it, you've already got insurance on it so I think you're screwed on that. If you speak with your agent (your actual AGENT, listed on your proof of insurance, not the 1-800 number) they're probably the only ones that can give you a definate straight answer on that. I've found the people at the call centers don't know much about the insurance policies, they're just there to take down the information and have an adjuster call you pretty much... but they'll still gladly answer questions even if they don't know the answer (that's when it gets really frustrating, then it turns into a game of he-says/she-says).

Sounds like this deal is really going to suck hard for you. Sorry to hear about this, but at least everybody is alright and it was only property that was damaged. Got any pics of the car, before and after?
-Doug

 

Doug,

I'm not trying to make a point about who owns the car (as if it relates to the issue), merely answering Corey's question about whether it was mine, my Dad's, or originally my Dad's and now mine.

Pictures and details of the car prior to the accident can be found at http://www.lt1.net/951sale.htm . After pictures will be available in a day or two, if I can get them downloaded (as mentioned, we're in the middle of a move)...

Jonathan