Expert: Bennie719 - 2/4/2008

Question
I have two questions. Number 1, My sister, 24 bought her first car from our cousin, a car dealer.  He thought she would have to have a co-signer.  I was going to co-sign.  He told us to put insurance on it and she could drive it before all the paper work was done.  I called my Ins, Progressive, and had the car added, but didn't add my sister.  turned out that she did not have to have a co-signer, however, I never added her to my policy.  then she had a fender-bender in a parking lot.  Progressive is telling me that since I do not own the vehicle, it is not covered under my insurance and therefore not liable to pay the claim even though all the ins payments have been paid on time. Is this correct?  Is there anything I can do?
Number 2, while the claims adjuster has told me they won't pay on this claim, she has been very belligerent with me and has been very sympathetic towards the other driver, (not a progressive policy holder) She has gone so far as to tell me the poor girl "has to drive a damaged car around because of me not putting my sister on the policy".  If i didn't know better I would think they were friends, we all live in the same small town.  Shouldn't my insurance adjuster be on my side regardless of who is at fault?

Answer
Hi Tami,
Under insurance law, you can not insure something that you don't own or have a legal interest in insuring such as an automobile, home, expensive jewelry, etc
Progressive will need to adjust your policy and refund any premiums that you paid on your sister's car.
If all the paperwork involved in the purchase of the car had not been completed at the time of the accident, then there is every possibility that the dealers insurance will cover this accident since they would still be considered the legal and registered owner of the car.
I think that is very unprofessional of the claims adjuster if she is making such statements as you referred to.
I hope this has been of help.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area