Will Insurance Cover Vehicle Being Sold and Check Bounces?

[navychief]

[FONT="Times New Roman","serif"]I sold my motorhome ($59,000) to a buyer whose checkbounced. I am now unable to locate the buyer or motorhome. [/FONT]

[FONT="Times New Roman","serif"]I sent the buyer a certified letter& copy of bounced check and haven't heard from him (I do have the signaturecard from USPS that it was received). My question will "my" insurancecompany pay for my loss since I cant find buyer or vehicle? I still have insurance on the motor home. What legalrights do I have other than small claims court? I still am making payments onmotorhome as well as insurance but don't have the motorhome or ability to pickit up because location is unknown. His bank just stamped "insufficientfunds" on check and sent me a copy. I live in Florida but the buyer livesin Alabama.
Thank you in advance,
US Navy (Retired) [/FONT]

 

[jacobtn]

Sounds like an expensive lesson. Ouch.

 

[GoCubsGo]

Probably too large for small claims. I'd report it to the police if you haven't already.

 

[djs]

Next time, make sure you get certified funds.
Apparently, you still have title, since you are making payments on the motorhome.

Take your spare set of keys, go visit his house and drive back home. Its still your motorhome.

Dan

 

[Aram Fingal]

First, I would definitely report this to the police. Passing a bad check for that kind of money is a big no-no.

As to your original question, I don't actually know the answer because I've never had a client in this situation. But it might be covered if it meets the definition of a theft loss and you have comprehensive coverage. The only way to find out for sure would be to call your insurance company and start a claim.

But I would recommend your first step be to contact the police as has been previously suggested.

 

[AgentProvocateur]

First, I would definitely report this to the police. Passing a bad check for that kind of money is a big no-no.

As to your original question, I don't actually know the answer because I've never had a client in this situation. But it might be covered if it meets the definition of a theft loss and you have comprehensive coverage. The only way to find out for sure would be to call your insurance company and start a claim.

But I would recommend your first step be to contact the police as has been previously suggested.

Yes, your first step should be to report it to the police. For it to be possibly covered under Comprehensive for theft, the police need to be notified. If the police agree it was theft via fraud, or some other means, and you file charges, I would expect it to be covered, if you have Comprehensive coverage on the motor home. Call your agent after you have spoken to the police, to find out how your coverage applies.

 

[djs]

If you hand someone the keys, its not theft as described in the policy.

It is fraud, as in the check wasn't any good.

Just to set expectations, I would highly doubt the policy will cover this. I would file the claim, but I wouldn't hold out hope to have it covered.

Dan

 

[AgentProvocateur]

I was curious, so I checked my old State Farm auto policy, and there is an exclusion for any physical damage loss, if you voluntarily relinquish the car under a sales agreement. Thanks for the correction, djs! I was wrong thinking it would most likely be covered by Comprehensive. It's a good lesson for me: I should take giving my opinion on a message board as seriously as I would advising a customer, and check the policy to make sure I'm right. I guess the exclusion makes sense, since you want your insured to be prudent & cautious when selling their car.

I'd still contact the police, and file the claim, if there is no other option to recover your vehicle, given the value of the motor home, to see if coverage might apply.

 

[Aram Fingal]

Things can vary quite a bit from State to State and company to company so it's always best for them to check with their carrier. I didn't have a policy handy when I answered it (because unlike the rest of you slackers I don't read these forums at work ) so I was really just thinking out loud.

Which is of course why there is a disclaimer at the bottom off all of my messages on these boards.

It's a good lesson for me: I should take giving my opinion on a message board as seriously as I would advising a customer, and check the policy to make sure I'm right.

 

[jacobtn]

Things can vary quite a bit from State to State and company to company so it's always best for them to check with their carrier. I didn't have a policy handy when I answered it (because unlike the rest of you slackers I don't read these forums at work ) so I was really just thinking out loud.

Which is of course why there is a disclaimer at the bottom off all of my messages on these boards.

You mean you actually have a life outside these forums? Thats the most shocking thing ive read on here this week.....