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Auto Insurance Claims/additional insured

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Expert: - 11/6/2008


Question
my aunt has agreed to lease her rv to a couple and they will take over the payments for 2 years then buy it outright. they will need insurance coverage on the rv. can she add them to her policy as additional insured?

Answer
Hello Harold,

As I reinterate, I can not give legal advice and won't attempt to. In my opinion though, this could be the absolute worse thing your aunt could do.
From my experience,and I have seen such disasters, first she is taking on a liability she does not want or need. She as the current owner of the vehicle may be subject to anything these people do. Say they crash it and cause bodily injury. She is in my opinion liable.
Now, the insurance company most likely is not going to agree to this deal because the vehicle is being sold and they could pocibly void the coverage all together.
I think your aunt is putting herself in a situation she does not need.
That is just my opinion.
I would highly recommend your aunt speak with her insurance agent and maybe even an attorney from her state.
I see insurance companies do everything they can to get out of a claim. I saw a denial because the guy used the vehiclle for occassional business and was not covered under a personal lines policy involving a theft.
I also saw where a lady just trying to make a couple bucks delivering newspapers got denied on her fire claim. The vehicle was totally filled with newspaper on a very hot day. The transmission over heated because of the heat and the extra weight. Completely accidental and the vehicle burned. The insurance company denied the claim because she was using the car for business and the car was only covered for personal use.
If in the event the insurance company goes along with this deal, which I don't think they will, get everything in writing!!!!!

Good Luck,

Rob

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Rob Painter, Ase, CFEI, CAFATE

Expertise

Please remember. I am not an attorney and cannot legal advice. My answers are based on my experience due to litigation I have been involved in as an expert, for both insurance companies and while oposing them opposing them. I deal with only comprehensive claims on autos related to fire and theft. I have even had the opportunity to rewrite policy coverage language as it relates to vehicle theft and forced entry for insurance defense attorneys.

Experience

Experience in the area: Working with insurance companies and attorneys on these issues for over 20 years. It is very common to have a reported stolen car with a so-called factory anti-theft system to have the theft claim denied. I have served successfully as an expert witness in the courts across the US representing the insured and their attorney revealing that the insurance expert did not take all known theories into consideration before rendering their "Forensic" conclusion. Many insurance carriers us independent "Forensic" experts to examine reported stolen vehicles commonly using flawed methodology implicating the innocent insured with the theft. My job is to determine if the insurance expert reached his conclusions based on accepted scientific principals or just net opinion with no basis other than opinion. My case record against such experts is very compelling.My resume can be seen at the catagory "Auto Theft and Prevention." In "Forensics" the scientific method must be employed. In the forensic locksmith field determining how a reported stolen vehicle was last operated, many processes cannot be duplicated and are conveniently not addressed. If they were, juries would have the opportunity to make a fair and impartial opinion at least about what the expert could or could not prove. There is a purported process determining the last key used. The chances of determining such is very rare uless the key is found in the ignition lock. Experts commonly destroy evidence as well and are rarely questioned on this event. I reveal the weakness in their testimony on such instances.

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