AboutBennie 719 Expertise I have extensive knowledge in Personal Auto, Homeowners Insurance and Personal Umbrella coverage. Also thoroughly familar with claims handling procedures. Will not be able to quote rates because I took an early retirement. I still maintain a valid California Property/Casualty Agent/Broker license.
Experience Experience in the area: I have been answering questions at allexperts.com since 2002 in the catagory of "Property & Casualty Insurance". Licensed in California since 1961, first in Life/Health for 3 years and as a Property/Casualty Agent/Broker since 1964. Retired at age 58, but still complete my 30 hours of continuing education every two years in order to keep renewing my license.
Expert: Bennie 719 Date: 5/26/2008 Subject: Stolen vehicle with no insurance
Question QUESTION: i had purchased a vehicle for my fiance, he was working out of town alot and we had stopped the insurance on the vehicle and stop driving it. he parked it in front of his home and it was stolen while he was out of town. we have a police report but GMAC is saying we have to continue paying for the vehicle because there was no insurance at the time it was stolen. any help is appreciated.
alicia
ANSWER: Hi Alicia,
When you are financing a vehicle with GMAC, or any other lender, part of the contract is that you must carry comprehensive and collision until the loan is paid in full.
If your insurance company knew that the car was being financed, when you stopped the coverage, they were required by law to notify GMAC
and provide 30 more days of coverage to GMAC from the date of notice, which only protected the balance owed to GMAC.
Once GMAC received notification that you had discontinued coverage,
their obligation was to place vendors single interest (VSI) on the car and charge you for the coverage. VSI only protects the lender for the balanced owed.
You need to trace this backwards to see if the insurance company or GMAC erred. If not, you are obligated for the balance owed on the vehicle since you had no insurance.
I hope this information was found to be helpful.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area
---------- FOLLOW-UP ----------
QUESTION: so if GMAC or the insurance company did not put VSI on it then I am still responsible for the balance owed. are they required to put some kind of forced insurance on it?
alicia thanks
Answer Hi Alicia,
The requirement is that your insurance company notify GMAC and they Secure VSI. This is why I said that you would have to check backwards to see who erred.
If you cancelled coverage on the 15th of one month, your insurance company didn't notify GMAC until the 13th of the foiilwing month and the car was stolen on the 17th of the following month, GMAC would not have had time to secure VSI.
You need to trace this backwards to find out if another party can be held liable, otherwise, you owe the balance to GMAC.
