Expert: Anne - 3/24/2008

Question
I purchased a vehicle from an auction. I lost the title before i could get it registered in my name, and my vehicle caught on fire. Will my insurance company honor my claim even though I haven't registered the vehicle or the title in my name?

Answer
Boy Derrick, this one is a hard one to get covered.

Fire claims are always seen as "suspicious." Most vehicles don't just cut on fire by themselves. Either there is mechanical breakdown (which most policies do not cover) or someone starts a fire if they have a financial motive.

What I am trying to tell you is that the insurance company will probably raise an eyebrow on your claim. The fact that you do not have the vehicle registered or have the title will add to their suspicion.

The will conduct an investigation and you are going to have to show how you paid for the car, and when did you pay for this car. If you got this in an action, then action people must have some type of record of the transaction.

Assuming that your insurance policy gives you coverage for "newly" acquire vehicles and you are within the time frame to notify the carrier (usually 30 days), then you can be covered.

They will honor your claim as long as you can show that you bought the car and you have this coverage in your policy.

Good Luck,

Anne

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