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Discussion Starter · #1 ·
A co-worker friend went to a Toyota Dealership Sunday to buy a 2004 Matrix, she finished paperwork and start driving off with the car.... She hit 2 other parked brand spanking new car in the dealership lots :AF: Total to fix the Matrix and the 2 other new car would be $4,000 more than what she paid for the 2004 Matrix :AF:
Insurance told her that she is not covered with the new car but with the old car, but because she had full coverage I told her to call her insurance company again because she already paid the 6 month insurance charge which should cover any accidents within that 6 month period.... Hopefully insurance company will take care of it, because she is a single mom with bunch of kids feel bad for her.
All I know is she better not come to the office, and if she has to come by she better not come close to my car :lol:
 

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if she lives in the state of california and she has full coverage then she's covered on the new car. also, she shouldn't have to pay for the other cars as well. the dealership should cover that under their insurance.
 

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Discussion Starter · #3 ·
Just asked the in-house lawyer in my company, he said he is pretty sure that the insurance automatically transfer over to new car for 30 days without notice. It is prefered if you call them to let them know before getting a new car but not necessary. :)
 

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TRD Liquid Silver said:
if she lives in the state of california and she has full coverage then she's covered on the new car. also, she shouldn't have to pay for the other cars as well. the dealership should cover that under their insurance.
I don't know about that second part... why would the dealer want that claim? She was behind the wheel when she hit 2 cars, how is that the dealers fault? I'd understand if she was uninsured but she's insured. Theoretically I could take my Celi and plow it into the front of some dealership, wiping out a load of cars and get away free and clear (as far as my insurance is concerned)?

I'm not saying I know for sure eitherway but I think this would be handled as if she hit 2 cars on the side of the road, her insurance would have to pay for everything FOR SURE in that situation.
 

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Its true. Insurance has to cover it. I am a licensed agent...i kno. I still have my book I used to study for the licensing exam. I quote

"Your covered auto is defined by the policy as meaning any:
-Vehicle shown in the delcarations
-newly aquired auto
-Trailer owned by the named insured
-Non-owned auto or trailer used as a <b>temporary substitute</b> for any other covered vehicle which is out of use due to breakdown, repair, servicing, loss, or destruction ( this applies to all coverages except part D physical damage)

Coverage for newly aquired autos is provided automaticallly and retroactivelly, subject to time periods for notice to the insurer and request for coverage...

All coverages, except physical damage(defined as comprehensive and collision- the ones with deductibles that apply to YOUR car), a newly aquired auto will have the broadest coverage for any vehicle shown in the declarations. Coverage begins on the date the named insured becomes the owner, subject to these conditions:

* if the newly aquired auto is an additional vehicle, the insured must ask the insurer to provide coverage within 14 days, or else coverage will not apply
*If the newly aquired auto is a replacement vehicle, coverage is automatically provided until the end of the policy period.

For physical damage (again for YOUR car- collision and comprehensive) coverage for the newly aquired auto will begin on the date the named insured becomes the owner, regardless of whether it is an additional or replacement vehicle. However, in order for the coverage to apply, the insured must ask the insurer to provide coverage:

*within 14 days if the applicable coverage applies to at least one auto shown in the declarations, in which case the new auto would have the broadest coverage provided for any covered auto.

*within 4 days if the applicable coverage did not apply to at least one auto shown in the declarations, in which case the new auto would be subject to a $500 deductible for that coverage.

end quote

So, basically if your friend has at least LIABILITY insurance, the other two cars are covered up to the limit of her liability coverage, which most everybody buys 15/30 liability (BIG MISTAKE). This basically means that her liability BODILY INJURY(if she hurts someone) is only up to $15k per person, which it probably won't be if the person is seriously hurt, and only up to $30k per accident, which is the MINIMUM required by law. So, if 5 people are hurt, she is only covered for $6000 each. The rest is her responsibility.
Same goes for property damage, except here is the scary part: In California, the minimum require is only $5k per accident! which is what most "cheapest insurance rates" places give out. This means that your friend is only covered for $2.5k per auto, for a total of the $5k if that is the limit she has. I NEVER sell this coverage. I always up the property damage portion to at least $100k, because it only costs maybe a few dollars a month for it. Think about: You total a 'cedes, beemer, or porsche, and you only have minumum liability- your screwed. So, your friend is required to report her buying the car within 14 days for the accident to be covered is the auto is an additional auto( if its a replacement, she has till the end of her policy period.)

That is for the liability (or her responsibility to other parties) coverage. For the Physical Damage(or her car) coverage, if she has the coverage on a vehicle in her policy, she must report the car to the insurer within 14 days, and the accident is subject to the highest deductible on the policy, i believe. If she has no other vehicle with collision or comprehensive insurance, she has 4 days from the purchase of the vehicle for the accident to be covered, and it would be subject to a $500 deductible before they fix her car.

BTW, Collision coverage covers any collision, except that with a animal.
Comprehensive covers theft, vandalism, and other "acts of god" (fire, lightning, earthquake, ANIMAL(damn beasts!!), subject to a set deductible. Collision claims go on your "insurance record" which all insurance companies can see and they rate your insurance by this, so more accidents, more money for the policy, and comp ins. does not go on this record, actually, it does, but it doesn't count towards the pricing. "

Sorry so long...if any of you need help understanding your insurance let me know. I'll be glad to answer any questions I can. And, if you haven't already, I would very strongly suggest you all up your coverages. Decent coverage would be 100/300 BI, minimum 100 PD, and it would be wise to have uninsured motorist..<--very helpful. If you do not have comp and collision coverage, unins. motorist covers PD to you car up to $3500. If you do have comp & coll., it covers any amount subject to your Collision deductible- UM claims do not go on record. It would also be very wise to have Coll. & Comp (not that any of us wouldn't because most of us are still paying off our loans and are required to carry this.) For the money, your just risking yourself if you don't have good coverage, and it really doesn't cost much more for better coverage.

edit:..ps: Need to add my Lic.# since I'm Discussing Ins.
CA Lic #0D39190
 

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Discussion Starter · #7 ·
BTW... Since you will be adding an aftermarket turbo on your celica, whats the insurance rule about that? Does it need to be reported? Will it raise premium? Might want to do a writeup on this and post it up here and cut and past in the forced induction forum :D
 

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ooooooooo interesting!~!
 

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Thanks for the props...yah feel free to ask me anything. As far as the turbo, I am researching it more...so far though:

Exclusions: The personal auto policy does not provide any coverage for:

* any vehicle while located inside a facility designed for racing purposes of competing in or practicing or preparing for any prearranged or organized racing or speed contest.

* Ownership, maintainance, or use of any motorized vehicle having fewer than 4 wheels, or which is designed mainly for use off public roads (but this exclusion does not apply to any vehicle used by an insured in a medical emergency, to any trailer, or to any non-owned golf-cart)

So...basically in my opinion...as far as the general insurance rules go, as long as it is certified legal for use on public roads, it should be okay, as long as you are not in any type of racing situation. However, I would still call up your insurance company and find out for sure.

**off the record: Don't call them and tell them "Oh this is so and so, and I have a policy with you, and I was wondering.." cuz then your screwed. Just call and make a general inquiry if modifying your engine would do anything to your policy, such as turbocharging. To be honest however, as far as I remember, and I worked for allstate, anything bolted to the car was covered, except for video equipment, etc. And in the event of an accident, I don't really think that a claims adjuster would look at your engine to see if it is modified, although in todays racing age, they might. Take what I've said here purely as opinionated information...not legal advice. Yet, I found nothing in the general insurance rules other than what I've written up there concerning any modifications to the engine. Every Insurer is different in its own little way. Call and find out.

oh, and btw...you should also ALWAYS carry gap insurance, as Paul (4b) will tell you. It cost literally cents more a month, and it could be the difference between what your car is worth before an accident and what you still owe on your loan. Your car could only be worth $2k, but if you still owe $14k, and you have gap coverage and you get into an accident, they cover you for the loan amount, NOT THE ACTUAL CASH VALUE of the vehicle.
 

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Discussion Starter · #11 ·
In case of an accident I was told to keep pen, paper, cell phone (to call cops), tape recorder, camera, crow bar, shot gun (if cops can not come by and you are too angry) in the trunk of my car :rofl:
 

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Discussion Starter · #14 ·
don't know, she said she was too excited when she was heading out. I guess she thought it would be like any other wagon or mini van type vehicle where throttle response is slow, did not expect the VVTL-i engine in there :D
 
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