Expert: Richard Hixenbaugh - 3/12/2011

Question
My wife was involved in an accident where the other driver was found to be at fault.  The other driver did not have insurance on her car.  She had just purchased the car a couple of weeks before and had not titled it in her name yet and procrastinated in contacting her insurance to get a policy for it. My insurance covered the damages and some rental car reimbursement, but I am still out $1400 in rental car for the time my insurance policy didn't cover as well as the diminished value to my 2008 car.  In my state I cannot claim diminished value against my own policy.  I know I can sue the lady for these things, but since she is only 19 and has a fast food job, the odds are slim of recovering anything.  She was listed on her parent's policy and she tried to make a claim as did my insurance, but was it was denied.  My first question, since she never titled the car in her name does any liability lie on the dealership?  Second, since she was on a policy, shouldn't that cover her for 30 days as far as liability insurance is concerned?   Thank you in advance.

Answer
Hi Michael,

This is an unfortunate incident.

If the at-fault driver purchased a car in her own name, then her parents police that she was named as a driver on would not provide coverage. The only way to get the parents policy to provide coverage is if one or both of the parents were listed on the title as owners. The car was never titled so that will not happen.

The dealer that sold the car is not liable here. They had nothing to do with the accident and can be made liable because someone else did not do what they were supposed to do.

If you have uninsured motorist property damage coverage on your own auto insurance policy, then you can collect your excess rental and diminshed value from your own policy. If you do not have that coverage, then there is nothing you can do. If you do have the coverage then you should visit www.collisionclaims.com for assistance with the diminished value claim.

I hope this helps
Richard Hixenbaugh