Expert: Richard Hixenbaugh - 3/7/2011

Question
I bought a car and thought that the dealer would notify my insurance co. to transfer ins. from old car to new one, since they took my ins. card, made copies of it and never told me that I had to transfer the ins. myself. They let me drive off the lot with the new car without verifying that it was insured.  I was then notified by the lien holder that the new car had been uninsured for two months.  I fixed the problem and the ins. took effect.  The lender then force placed ins. for a period of time that had already gone by.  I don't see how they can do that when the time was already past, there had been no accident and they never suffered any loss. Can they charge me $900 for something that doesn't exist.

Answer
Hi Alice,

$900.00 sounds very expensive for insurance for 2 months. You should contact your state insurance commissioners office to see if this is correct. You will likely need to file a formal complaint. The $900 should be removed and you should only be charged for the 2 months, if any.

I hope this helps
Richard Hixenbaugh