Possible denial of claim due to new vehicle purchase and transfer of policy to new vehicle.

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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: Mar 6, 2013

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Insurance Question from Detroit, MI

Asked on 03/06/2013

Possible denial of claim due to new vehicle purchase and transfer of policy to new vehicle. If I buy a new vehicle and transfer the insurance from the old vehicle to the new vehicle via the auto dealership and suffer a loss theft within 30 days can my claim be denied even though i got a certificate of insurance from the dealer with the policy number and was able to obtain a vehicle registration. also current on payments to the insurance company? also vehicle was recovered the same day.

Answer given on October 16, 2013

If you purchase a new car that replaces the old car, the insurance on the new car is usually automatically covered for a period of time. Each insurance company is different, but the time is usually between 10 and 30 days. The insurance on the new car is the same as the previous car until you actually contact your agent to request any change in coverage.The transfer of insurance needs to be done by you with your insurance company or agent. Advising the car dealership of the change does not make any change automatic unless your insurance is through the dealership, which is very unlikely. If you did not contact your agent or company and you are beyond the time frame of automatic coverage, the insurance company can deny any claim to the new car.If your car was not insured at the time of loss, you need to contact your company immediately since it has been recovered. If there was damage to the car due to the theft, your insurance company may deny coverage for the claim and may require you to repair the car before they will insure it.

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