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Auto Insurance Claims/accident question and forced insurance
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Question
Hello,
I was recently in an accident where I rear-ended someone (it was my fault). I come to find out that for whatever messed-up reason I do not have collision coverage. I bought my insurance online and clicked that I was making payments on the vehicle (it is new) as it is not paid for. I did not realize I was only purchasing liability insurance at the time. The insurance says they cannot help me at this point, but a few people have told me the insurance company is responsible for selling me less than full coverage because the car is not paid for, and it is illegal in this state to drive with less if the car is not paid for. First, is this true? Can the insurance company be responsible for this or is it my fault? Could the dealership be liable for letting me drive off the lot without more than liability?
Also, I am wondering as a last-ditch effort if you could tell me anything about forced insurance. Someone has told me that banks you lend your car through has back up insurance built in to your monthly payments in the event the insurance company does not pay for something if there was a collision, called Forced Insurance. Do you know anything about this?
If you could help me out I would really appreciate it.
It is not illegal to drive a car without collision coverage; with or without a lien. The coverage that you were purchasing would have been clearly shown before you clicked the "pay" button so I don't see how the insurance company could be responsible.
As an agent of the finance company, the dealer could potentially be held to that finance company for not verifying that coverage was in place at the time of the sale. Then again, I do not know how long after the purchase this accident took place or what the agreement is between the finance company and the dealer. If it was within a few days, then the dealer might be on the hook. Otherwise, it will be your responsibility.
Yes, the finance company can "force place" insurance but unless they had already done so at the time of the loss, there would be no coverage. By the way, force placed insurance is very, very expensive.
Good luck!
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Answers by Expert:
webfoot
Expertise
Auto damage, liability, insurance fraud. I am a full time auto insurance adjuster with experience in collision, theft, liability and fraud investigation. I am also an ASE Master Auto Tech and I-Car Collision Platinum certified. My experience includes 15 years in the auto repair industry, a B.S. in Criminal Justice, Law enforcement and auto insurance. ****** NO "PRIVATE" QUESTIONS WILL BE ANSWERED. I HAVE FOUND THAT NEARLY ALL PRIVATE QUESTIONS COME FROM PEOPLE WHO ARE CONSIDERING OR ATTEMPTING TO COMMIT FELONY INSURANCE FRAUD AND I'M NOT HERE TO HELP YOU! ****** I AM HERE TO ANSWER AUTOMOTIVE REPAIR, CLAIMS PROCESS AND SOME SIMPLE LIABILITY QUESTIONS. I CANNOT ADDRESS COMPLEX LIABILITY SCENARIOS WITHOUT HAVING ALL OF THE INFO FROM BOTH SIDES IN FRONT OF ME. QUESTIONS ABOUT PREMIUMS OR HOW INSURANCE IS RATED SHOULD BE ADDRESSED TO YOUR PERSONAL INSURANCE AGENT WHO KNOWS A WHOLE LOT MORE ABOUT YOUR HISTORY THAN I DO. I'VE NEVER SOLD INSURANCE AND DO NOT KNOW IF YOUR INDIVIDUAL INSURANCE RATES WILL GO UP IF YOU MAKE A CLAIM. THOUGH I'VE HANDLED SOME VERY MINOR SOFT TISSUE INJURY SETTLEMENTS, I PREFER NOT TO ANSWER INJURY RELATED QUESTIONS. I'M NO INJURY EXPERT AND I'LL LIKELY SAY SOMETHING TO HURT SOMEONE'S FEELINGS AS I BELIEVE THAT MANY SOFT TISSUE PAIN AND SUFFERING CLAIMS ARE OVER DRAMATIZED. UNLIKE MANY OTHERS, I AM ON THIS FORUM AS A VOLUNTEER WITH NO PRODUCTS OR SERVICES TO SELL AND PROMISE AN UPFRONT ANSWER BASED ON MY EXPERIENCE IN BOTH SIDES OF THE INDUSTRY. IF YOU PROVIDE ME WITH A HONEST VERSION OF EVENTS, I PROMISE A CANDID AND HONEST ANSWER IN RETURN. I CANNOT ADDRESS ALL CLAIM SCENERIOS DUE TO DIFFERING STATE LAWS AND REGULATIONS, BUT WILL DO MY BEST. PLEASE REMEMBER THAT AN HONEST ANSWER MAY BE ONE THAT YOU DON'T LIKE SO IF THAT IS GOING TO BE A PROBLEM, PLEASE DON'T ASK THE QUESTION. LASTLY, I DO NOT ACCEPT RATINGS AS I DON'T DO THIS FOR RATINGS AND WISH TO SPEAK FREELY.
Experience
20 years in automotive industry, Currently in insurance claims, worked actively as technician and shop owner until about 10 years ago. Current ASE Master Auto Tech and I-Car Platinum Collision Certifications, B.S. Criminal Justice and 10 year auto insurance/extended warranty background
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