Expert: Bennie719 - 2/23/2008

Question
I recently purchased a brand new VW GTI & when I went to pick up the license plates for my car I backed into a car that was parked behind me at an angle. Luckily it hit the new license plate frame & you cannot tell there was a collision at all on my car. But on the car behind me there was a scratch on the bumper. At the time, I didn't have insurance because I had sold my previous car to them & was looking for new insurance. I've heard that with new cars in Washington State that you get 30days to obtain insurance & you are covered by the dealership until then? Is that true?

Answer
Hi Brandon,
Even though you sold your old car to the VW dealership, if you did not cancel your old policy it would automatically cover the new car for 30 days for the same coverage that you had on the old car.  Since you have no damage to your new car, the property damage liability from the old policy would cover the damage to the car that you hit.
To the best of my knowledge, there is no law in Washington state that provides you 30 days coverage through the dealership.
Many times a dealership will put a 30 day 'binder of insurance' for comprehensive and collision (at a charge) so that the lending institution is protected and they can go ahead and deliver the car.
Rarely, if ever, does this binder include Bodily Injury Liability and Property Damage Liability.
If you didn't cancel your old policy, that's the best source for coverage to the damaged vehicle.
By reading your purchase contract and calling the dealer, you can learn what coverage, if any, was placed on the new car by the dealer.
I hope this information has been of help.
Sincerely,
Bennie
San Francisco Bay Area