Asking for a friend, insurance question

[tomcat27]

it sounds straight-forward, but insurance laws vary widely from state to state.
the insurance company's rule for a 5 day waiting period is really intended for an increase in insurance coverage on a vehicle that you have already had lesser coverage on - to insure that you dont suddenly increase coverage to cover an accident that you already had. I would imagine that IF he had told them the increase was for a new car that there would be no waiting period.

automatic coverage for a new car is likely set at the previous coverage level. It seems to me that he loses here: no coverage on the car and he will still need to repay the loan. likewise, he violated terms of the loan which call for insurance coverage.

 

[mk378]

Is this the same "friend" who's dashcam showed him driving in reverse on the freeway? I bet he does go through a lot of cars.

How would one insure a car that they no longer own? That makes no sense.

It's also not a free 30 days coverage of a new car, they will back-date it.

 

[Wolf359]

Originally Posted by PWMDMD
czbrian....my guess is in MA we do not have "insurance cards" and all insurance info is on the state registration. No insurance info day of sale = no registration. In MA it has always been the same across many car companies....they literally make me call my insurance company in front of them, review coverage and then ask to speak directly to the agent and they require something to be faxed to them before I can leave with the car. It is foolproof and easy....


Yeah, I bought my car out of state and I was just able to get insurance just by calling the company and giving them all the info. Had full insurance on it even before it was registered. I had already paid for the car but hadn't picked it up yet so technically once you exchange papers, the car is yours so I wanted it insured in case something happened to it before I picked it up.

 

[PimTac]

Part of my shopping research is also contacting my insurance company to see what the new premiums would be. When I purchase the car the dealer will verify with the agent prior to my driving off the lot. They even do that for test drives now.

I'm trying to guess why the friend left the insurance on the car he sold. Was the buyer unable to get insurance? The story is way too fishy.

 

[Nick1994]

I bought my Sonata and didn't have full coverage on my Camry, drove off the lot just fine. I called my insurance company that afternoon though to insure it.

But, sorry to say he's screwed, and it's his fault. He should have called the insurance company from the dealership to insure it. Do stupid things? Have stupid consequences.

 

[JLTD]

Wow. Sounds like a series of bad judgement calls by your friend.

How do you NOT fully insure a brand new car? I mean really, wait for a few days to drive it.

If the full coverage didn't start until Day 5, and he had an accident on Day 4....then he didn't have the full coverage. So yes, that's how it works.

This is compounded by him neglecting to save the data from his dash cam. The only way to prove it's the other driver's fault is with some sort of evidence...IF he could prove it, the other driver's insurance would pay to fix his car. As it is (I don't know CA law) if there's no clear evidence who is at fault, either he's in for 50% of each vehicle or 100% of his own.

 

[PandaBear]

Originally Posted by atikovi
The old, "asking for a friend" question, eh.


Literally though, friend is just out of school and his family has never had cars, and therefore insurance.

Originally Posted by AZjeff
This story starts out bent and never straightens out..

Friend sold car but didn't cancel coverage, but did reduce from full coverage to liability. Huh?

New car coming in so increase policy back to full coverage on a car he doesn't own. Huh?

Forgets to tell insurance he took delivery knowing about the 5 day lag in change?

Dash cam footage proving other driver at fault erased?

Seems like lots of effort expended to save a couple of dollars somehow by scamming the insurance and got caught out before the scam was completed.

What was to be gained by not playing by the rules?

Let your friend sort it out.


I am not 100% sure but I do remember he complained about the insurance cost of the new car.


Originally Posted by ARCOgraphite
I don't know any bank up in the Northeast that will let you off the lot without an Insurance binder or proof of Full coverage**. This would be on an Auto loan not personal or bridge loan.

What is wrong with CA?

** this would be low deductable Comprehensive and Compulsory

Since the "friend" is not at fault, is there camera footage from State or Town traffic cams in the area
and How does the Police report assign fault



I saw the police report. In California I do not see a "who's at fault" section but rather where the damages are for both cars, which directions they are going, are they intoxicated, insurance policy info, etc.

Is it possible to request traffic cam footage without criminal case? I'm not sure what's going on but it is going to be either driver running a red or traffic light malfunction (unlikely).

Originally Posted by PimTac
Part of my shopping research is also contacting my insurance company to see what the new premiums would be. When I purchase the car the dealer will verify with the agent prior to my driving off the lot. They even do that for test drives now.

I'm trying to guess why the friend left the insurance on the car he sold. Was the buyer unable to get insurance? The story is way too fishy.



He was shopping for insurance, and he heard about the 30 days grace periods.

This is what I heard from him (I haven't reviewed his policy):
The lender did mention he didn't have comprehensive coverage before buying so he added it, the insurance company say 5 days pending (as you guys mentioned probably to avoid fraud). The loan cleared, so they must have reviewed it (it was a small loan though, around 25% of the new car's worth).
He took ownership on day 1, he got into accident on day 4.
My guess is he kept the insurance of the old car because he want to use the grace period to save the new car insurance cost while buying him some time to shop around. He was in a sticker shock when he saw how much new car insurance costs.

 

[PimTac]

It sounds like he maxed himself out on the monthly payments and didn't consider the cost of insurance premiums. Everyone wants the sporty or sleek new car but there is that added cost of insurance. Obviously insuring a Corolla will be far less than insuring a Corvette.

Again, he is in big trouble. Not trying to pile on here but his worries are just starting.

 

[geeman789]

Few problems here ...

He cancelled collision on his old policy. So it does not carry over to the new car in the typical 14 day transfer window.

He was turning left. The guy turning left is ALWAYS at fault, unless there is a witness (person, dash cam etc ) who can confirm the driver had a left turn arrow. It gets messy when you turn left to clear the intersection on a red light, but the other guy drives through the red light. Again, YOU NEED a witness, or you are deemed to have turned left when unsafe to do so.

Speed is rarely used to determine who is at fault, because people don't have radar guns ... so everything is a guess.


And, the insurance conversation(s) smell funny. Was he hiding something, or trying to save on premiums ?


Your friend in all likelyhood has a real big problem.

 

[geeman789]

The lesson here is that you ALWAYS check to see how much insurance would be on the car you are thinking of buying, BEFORE you buy it.

Too late now ...

 

[Gebo]

You say this is a young man just out school. That is sad. He appears he messed up. Where were his parents for advice? He may need invest $350 and lawyer up.

I would NEVER and have NEVER purchased a car without having insurance first. Too many bad possibilities.

Go Fund Me....

 

[PandaBear]

Yeah the more I hear the more I feel bad for him. Like I said his parents are not part of this because they don't own cars and have no idea how auto insurance work. He is a first time car owner (well, 2nd time after owning a beater for a few months).

Turning left is always at fault is something that even I didn't know about (and I've been driving for 25 years and 350k miles.).

The funny insurance situations? I am sure it is about saving a couple hundred bucks, and it looks really expensive now.

 

[The Critic]

Copy/pasted this from my auto insurance carrier's form:

Quote

H. "Newly acquired auto":
1. "Newly acquired auto" means any of the following types of vehicles of which you become the owner during the policy period:
a. A private passenger auto or sport utility
vehicle; or
b. A pickup or van, for which no other insurance policy provides coverage, that:
Has a Gross Vehicle Weight Rating
of 10,000 lbs. or less; and
(2) Is not used for the delivery or transportation of goods and materials unless such use is:
(a) Incidental to your "business" of
installing, maintaining or repairing furnishings and equipment;
or
(b) For farming or ranching.
2. Coverage for a "newly acquired auto" is provided as described in 3.a. and 3.b. below. If
you ask us to insure a "newly acquired auto"
after a specified time period described below
has elapsed, any coverage we provide for
that "newly acquired auto" will begin at the
time you request the coverage and you will
not have coverage for the elapsed period of
time.
3. Coverage for a "newly acquired auto" depends on whether the vehicle is in addition
to or replaces a vehicle shown in the Declarations.
a. A "newly acquired auto" which is in addition to any vehicle shown in the Declarations will have the broadest coverage
we provide for any vehicle shown in the
Declarations. Coverage begins on the
date you become the owner. However,
for coverage to apply you must ask us to
insure it within 30 days after you become the owner.
b. If a "newly acquired auto" replaces a
vehicle shown in the Declarations, it will
have the same coverage as the vehicle
it replaced without your having to ask us
to insure it. However, you must ask us
to insure a replacement vehicle within
30 days if:
You wish to add or continue any
coverage provided in the Damage
To Your Auto Coverage Section; or
(2) It is a pickup or van used in any
"business" other than farming or
ranching.


In summary, he has coverage on a newly acquired vehicle. However, the coverage terms are limited to what his prior vehicle was covered for -- which sounds like liability only.

Technically, he is in a position to add the vehicle to his policy starting the date that he took ownership. But due to the open claim, this is going to become a coverage reformation so I wish him the best of luck.

 

[KrisZ]

This is definitely a hard lesson for your friend. If he doesnt have a hard proof he was not at fault, his is most likely out of luck.

 

[Alfred_B]

Prior to buying, it is possible to make an arrangement with the insurance company for the new car coverage. I've never had issues with it.

But the whole story doesn't sound right. The lenders, unless incompetent, will require proof of coverage.

 

[PandaBear]

Originally Posted by Alfred_B
Prior to buying, it is possible to make an arrangement with the insurance company for the new car coverage. I've never had issues with it.

But the whole story doesn't sound right. The lenders, unless incompetent, will require proof of coverage.


The lender and the friend are both incompetent, it has a list of requirement on insurance (it said comprehensive). Friend got comprehensive while dropping collision (being a 1st time new car owner from a no car family), and send the insurance info to the lender, the lender approved the loan, the friend got the car, the friend think it has the right insurance, and have 30 days to add the car, then the friend got into an accident 2 days later.

The friend immediately add the car, thinking that it is fine, the friend still didn't know he didn't have collision until me and other friends told him comprehensive didn't include collision, and he just filed a claim and still haven't added the new car to the insurance policy.

We told him to buy a lottery ticket, because he will win.