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Who has insurance coverage on the car?

by David

My son needed a better car to travel to and from various locations in regard to his new job.
He purchased a used (2007) car from the used car part of a new car dealership. He was never asked to provide proof of insurance and did not have insurance. The dealership put him in the car with their paper tag on it. The dealership "found" him a lender. He went to the lender and they told him he had 15 days to get insurance. He text an insurance agent the vehicle info, but the agent didn't get the text for several hours due to meetings and when he did he text back that he would get a quote the next morning.

He was so excited about finally having a decent car and was driving to show it to his brother when he had a wreck. No police was called and the party that he hit (from behind) said they would take care of their own car. This kid has always been the most safe driver in our family. The wreck shocked us all!

Now, since the dealership let him have the car with their tag on it without requiring proof of insurance, and the lender told him he had 15 days to get insurance, and the agent got the text but didn't realize that he was already in the vehicle, who had the car covered?
The damage estimate is over half of what he was paying for the car.

I have been told by knowledgeable people that the dealership goofed by allowing him to drive the car with their paper tag on it without proof of insurance and that the dealerships insurance should cover this car.

Answer to Who has insurance coverage on the car?

Hello David,

I am sorry for the delay, our system was down. I am not sure if this is timely, but here it goes.

Well, it is your son's responsibility to have insurance on the car the minute he drives away. The dealership or the lender may want to have the car still insured, so they can ask for proof of insurance, but it is the ultimately responsibility of the owner to make sure his/her car is insured.

It was, no question, stupid for the dealer to ask for 15 days, and for the agent to not get insurance as quickly as possible, however, the vehicle owner is still liable for the damages he caused.

If you son lives in your household, it possible that your current policy (in other vehicles) has a clause for newly acquired vehicles. Typically, that insurance policy will protect you for up to 30 days or a reasonable time. Look to see if there is insurance there.

Good Luck

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