Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Dec 6, 2011

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Insurance Question from Las Vegas, NV

Asked on 12/06/2011

When you buy a vehicle from a dealership and finance it. Isn’t it a law that you have to have full coverage on the vehicle in order to get financed? I bought a vehicle nov 23rd 2011 and hit a curb nov 25th 2011. I hadn't called Geico yet because of the holiday and now my claim was denied because I hadn't called yet? The car I traded in was on the insurance already and Geico is claiming that the car I bought was a replacement vehicle and it really was not. The car I traded did not run and I could not drive it anyway.

Answer given on December 07, 2011

When you purchase a new or used car as an additional vehicle or a replacement vehicle, it is automatically insured by your insurance company for a period of 5-30 days, depending upon the insurance company’s rules for newly purchased vehicles. The insurance protection on the new car will be the same as the existing car, or the car that was replaced. If you have more than one car, the car with the most insurance coverage will be the coverage provided on the new car.If the car you had insured previously did not have comprehensive or collision coverage on it, and you don’t have another car with more insurance coverage, then the new car would only have liability insurance on the new car. Since the old car didn’t run, it is unlikely you had collision insurance on it, so you would not have any coverage on the new car.You may want to see if the dealership has any coverage on the car. sometimes they insure the car until they can confirm proper insurance on the car with your insurance company.


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