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Auto Insurance Claims/Owner financing a car

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Expert: - 5/27/2009


Question
If I sold a car & owner financed it, but still owed a bank note, & have to carry insurance on that vehicle for the bank, will my insurance pay a claim if the car they wreck that vehicle?

Answer
Hello,

Although this may seem like a great deal to you by getting rid of the car, don't do it. You are opening yourself up to all sorts of liability.

OK, you are going to finance where they pay you monthly payments. What if they quit paying? What if they blow the engine up? You will still owe the bank and have nothing to show for it.

As for the insurance, this could be construed by the insurance company as fraud.

Have you even asked the bank if they will let you assume responsibility of letting someone they know nothing about make payments? Most likely not.

This may seem like a good idea to get you off the responsibility, however I have NEVER seen these situations turn out right. Don't do it!'



Rob

Auto Insurance Claims

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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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