Expert: Anne - 12/4/2009

Question
Hi,

I was driving a rental vehicle and I rear-ended another vehicle.

I had set up Auto-insurance, since it was a long-term rental, but when I reported the accident, my insurance company told me that I NEVER indicated that it was a rental vehicle, and they never ASKED me if it was. They just had the VIN number.

Will I have to pay all the damages, or are they still obliged to cover me.

Thanks

Answer
Hello John,

Boy, this is an very interesting situation. The insurance company new you were insurance a vehicle, and they took the premium. However, there are concepts like "insurable interest" that could cause you big problems, see: http://www.auto-insurance-claim-advice.com/Insurable-Interest.html

A coverage investigation must be done and see if this was a "good faith" mistake and whether coverage must be granted.

Also, if the insurance company is not cooperating, get an attorney. The errors and omissions insurance of the agent may have to step in and cover this mistake.

I hope this helps,
Good Luck
Anne

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