Didn't Switch Newly Bought Car to Insurance and Now Accident

[davidcarmichael]

It shouldn't need an engine replacement just based on what you're telling us.

I just called them and they said engine is definitely shot. They said that even if it's not that deep, if it gets sucked into the engine it can ruin it. I may not have mentioned it but I did try to drive it in reverse out of the water before I got out to push it, so maybe that's what did it.

 

[Crabcake Johnny]

I think you just lost 12K.

 

[Mark]

Hi. Long story short, I bought a used car (I'll refer to as 'new' here) 36 days ago from a dealership. They said they would 'take care of everything' like the registration, etc. They took my insurance card as well.

I was driving in the rain and the street was flooded, causing my engine to go out. Now they are saying I'll need a new engine, which will cost $18,000 - and I only paid $12,000 for this car.

I've had insurance with Progressive for over 2 years but they only had my old car on file. I called and they said they will not cover the new car since I didn't call about it before hand. They have a grace period of 30 days but it's 36 days so I don't get anything.

Half the people I've told this about say it's my fault for not calling and I have to pay this out of pocket. The other half say that their dealership made them switch insurance on the spot before they get their car.

Also, I have a registration for the new car from the DMV. Someone told me that it's fraudulent for the dealership to even get that without having my insurance switched to this car and that technically the car should still remain covered under the dealership's insurance.

This is all in Virginia, BTW (though the flooded road was in MD). Do I have a case here at all and should I contact an attorney?

Stop blaming other people for you not taking care of this. Everyone in the world knows when you buy a car, that you call your insurance company and add the new car to your policy. I have bought over 15 cars and never once did I think the dealership would take care of it for me. If you want to sue someone, sue yourself.

At what point was you going to add this car to your ins policy. It was 36 days after a normal person would have add the car to their own policy and you still didnt do it.

The dealership did take care of everything they had to. I bet they took your insurance card. If you had wreck the car in the 1st 30 days, then you car insurance company would have coverage it. The dealer took you card so that in case you wreck the car, while in your testing period or the period when you could have returned the car, that they would have been covered.

I've never heard of someone driving in the rain and the engine stop because of it. That tells me that you drove in water that must have been really deep. Sounds like your fault again. I might be wrong, but if you had car insurance would it covered the engine repairs?? HMM

I'm not a car ins agent, but I do have some common sense on days that end with a "y"


It's all your fault. Just own up to it and stop trying to blame everyone but you.

 

[briko3]

Get it sent to another shop for a second opinion. Did you expect to call them after they quoted you a $18,000 repair and them tell you that it's fixable all of a sudden?

For that much money, I'd spend the extra $200 or so to get it towed somewhere else if YOUR choosing. Shoot, they might even waive the towing fee if you get it fixed there. Just call some people up there and ask if they can do it or not.

 

[Crabcake Johnny]

I contacted my auto agent over this question and realize this is state specific. Your state may be different.

When purchasing a new car the dealership is responsible to make sure you have current insurance. After buying the car you have 30 days to add the car to your current policy and it's automatically covered when you drive off the lot.

If you do not add the vehicle within the 30 day period it is now uninsured. No dealership has the authority to contact your auto carrier to add a new vehicle.

On top of that, I ran your story past him; drove in deep water which toasted the engine. Without contacting claims his best guess is that would not have been covered anyway.

 

[LoriRutl]

Ignorance is NOT an excuse. You should have called your insurance to switch the coverage to the new (used) car.

 

[djs]

Hmm, something is wrong here...

I'll speak for California, rules may vary by state.
No problem with the registration. Your car was insured for 30 days. The dealer usually faxes the change to your insurance company, but the insurance company won't do anything unless YOU call them. I do this every day.

There is NO LOSS here for an insurance company to pay. Read your policy. Driving through standing water that is ankle deep does not cause a car to fail. It is not a collision. If it had flooded the interior, it would be a comprehensive claim, but it didn't.

You didn't describe what happened that makes the engine have to be replaced. Ankle deep water makes it hard for me to think it has anything to actually do with the engine, but probably a major electrical problem.

The car was a lemon. Hopefully you bought a warranty with it, the warranty should cover its portion of the repair bill. An insurance company will not pay for repairs to your vehicle for this.

Why would you think this is an insurance issue at all?

Dan

P.S. Your mechanic is ripping you off, unless the car had a bad engine when you bought it.

 

[JustinUpright]

Just hang on to it. Once Obama is done with health ins he is going to fix those greedy car ins companies too. I heard he is going for a GI car insurance as well.

Once he gets that straightened out you will be able to get insurance and fix the old damage.

 

[Mark]

Just hang on to it. Once Obama is done with health ins he is going to fix those greedy car ins companies too. I heard he is going for a GI car insurance as well.

Once he gets that straightened out you will be able to get insurance and fix the old damage.

OBAMA = CHANGE,,,

TRUE THAT!!! I HAD SOME MONEY AND NOW I DONT.

I'M SEEING A LOT OF CHANGE ALREADY.

 

[Crabcake Johnny]

Agreed. I can't imagine any case where driving through standing water would render the engine useless. Back in the old days the distributor would get wet and it would conk out. Not now.

I agree - the car was a lemon. Engine might have had a crack in it which allowed water to get in.

There are no lemon laws for used cars. They are sold "as is." So unless the dealership had some kind of warranty (sometimes 30 days on used cars) again, you're out 12K.