Am I liable for a car I told insurer not to cover but they kept on the policy for a half a year?
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UPDATED: Nov 14, 2012
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Insurance Question from Mattoon, IL
Asked on 11/14/2012
Am I liable for a car I told insurer not to cover but they kept on the policy for a half a year? We bought a new car and sold an old one. We informed our insurance company of this. More than half a year later, we found out that the new car was added to our coverage, but the old car was not dropped. Instead, coverage had been dropped on a third car we own. We were told "errors & omissions" would have covered the wrongly dropped car had anything happened. Would we have been liable for the old car, now owned by someone else, if it had been in an accident? We also were not given any refund for the time the wrong car was covered because "errors & omissions" would have covered it.
Answer given on December 12, 2012
If you advised your insurance agent or company to remove a car and to replace it with another, they should have done as requested. If there had been a loss on the car that was insured in error, you would not have been responsible, since you did not own the car.The insurance company needs to reinstate the insurance on the car they wrongly removed. They then need to take off the car in question. There may be no difference in the insurance costs once the error is corrected. However, if the car that should hav ebeen removed costs more to insure than the other one (maybe it is newer) then the insurance company must refund the difference in the premium.Errors and omission insurance would have most likely protected you regarding the car that was not properly insured had there been a loss. However, it would not apply to the car that was wrongly insured, since there would have been no monetary loss regarding it, other than the premium.
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