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If I’m Transporting my New Car Across State Lines and Get in an Accident, Doesn’t My Insurance Have to Pay For It?

Written by Michele Wilmonen. Posted in Ask An Insurance Question Last Updated: 02/02/2012

Don’t let your insurance company get out of paying an accident claim on a new vehicle.

You have up to 30 days to add a new car to your insurance policy. As long as you are within that time period, any accident that you get into with your new vehicle should be covered.

Now, if you do get into a car accident and the insurance company challenges you on who the registered owner of the vehicle is, you need to be prepared. Because the vehicle title will most likely not be completed yet, you will have to depend on the bill of sale. The bill of sale will show that you are the new owner of the vehicle, even if it has not been registered yet.

If your insurance company still refuses to pay the claim after you have proven ownership, you may have to get the Insurance Commissioner or the Department of Insurance in your state involved with this one. They will be able to give you any additional advice you need, or step in on your behalf with in the insurance company to get your accident claim paid.

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Michele Wilmonen

Michele's first introduction to insurance was working for a major insurance company as a file clerk and a mailroom supervisor in a regional office. She learned insurance directly from underwriters and claims adjusters from questions and also watching them do their job. Since then, she's earned a number of insurance certifications from the Insurance Institute of America and also a Bachelor’s degree from the University of Idaho. She blogs at Car Insurance Guidebook.

Reviews (2)

  • Bishop Clifford A Jackson

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    Because the Church had the car financed in the “Church’s Name”, the insurance company is saying that they refuse to pay the claim although, the car was listed on the insurance poicy and I was listed as the named insured on the insurance policy.

    The agreement that the church and I had is that the church would arrange for the financing of the vehicle and I would furnish the down payment for the car and provide the insurance. The church and I agreed to have a payroll deduction for the payment untill the debt was satisfied in full. I did have the agreement drawn up and notorized.

    Please give some information that would help me to settle this claim. I was talking to an attorney who said that he felt that I had insurable interest in the vehicle because I paid the down payment and that I was responsible for the repayment of the car loan. This claim is now two months old…

    Reply

    • Michele Griffin

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      It sounds like the insurance company is looking at the church as the lienholder on the vehicle, which would give them the primary interest on the car. Whenever there is a car that has a loan on it (even if you have made a down payment) the company (lienholder) that loaned you the money to purchase the vehicle is the first one to be paid off in the case of a total loss. Anything left from the settlement of the vehicle worth and the loan would then be paid to you.

      If the company is refusing to pay you or the church the amount of the total loss, I would recommend seeking the assistance of your agent or your attorney.

      Reply

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