A friend had an old car that he had full coverage on, then one day he sold it because he ordered a new car. When he sold the car, he didn't tell his insurance company he sold it, but he told them he wants to reduce the coverage from comprehensive to liability only. Then one day the manufacturer told him the car will be ready soon, and he told his insurance to increase the coverage back to comprehensive, so he can take advantage of the insurance company's automatic coverage (30 days), and he need the coverage to get the car loan (say about 25% of the car's purchase price).
This is when it gets interesting: the return back to full coverage takes 5 days of wait. He got the new car on the 1st day of wait (loan approved, down payment, sign and drive the new car home, etc), and on the 4th day he got into a car accident. Supposedly, he "forgot" to tell the insurance company immediately he got a new car, and he only told them when he was filing the claim at the same time. Who's at fault I don't know, but he somehow forgot to turn off the phone he used for dash cam footage, and the footage got roll over and overwritten. He was doing a left turn when the arrow was green, and the guy that hit him head-on was supposedly speeding.
So, now he has only liability at the time of accident, the insurance company says he is on his own repairing his new car. Is that how it supposed to work? How did the lender not verify the insurance is not notified and his policy started? How do people driving off the dealer's lot get coverage if they trade in an old beater on a Sunday?
This is when it gets interesting: the return back to full coverage takes 5 days of wait. He got the new car on the 1st day of wait (loan approved, down payment, sign and drive the new car home, etc), and on the 4th day he got into a car accident. Supposedly, he "forgot" to tell the insurance company immediately he got a new car, and he only told them when he was filing the claim at the same time. Who's at fault I don't know, but he somehow forgot to turn off the phone he used for dash cam footage, and the footage got roll over and overwritten. He was doing a left turn when the arrow was green, and the guy that hit him head-on was supposedly speeding.
So, now he has only liability at the time of accident, the insurance company says he is on his own repairing his new car. Is that how it supposed to work? How did the lender not verify the insurance is not notified and his policy started? How do people driving off the dealer's lot get coverage if they trade in an old beater on a Sunday?