Is a car dealership liable to collect proper insurance for a vehicle they just sold before it leaves the lot?

Get Legal Help Today

 Secured with SHA-256 Encryption

Is a car dealership liable to collect proper insurance for a vehicle they just sold before it leaves the lot?

This issue is one in Texas. In this issue, the purchaser did not have any insurance and was not insured. The dealership let the driver take the vehicle with no proof of liability insurance. In this case,  how is the person involved in an accident able to recover any losses since therer was no insurance from t he purchaser of the new vehicle? I know that the insurance company of the other party had insurance and they would pay for damages, etc., but who pays for doctor bills, damages, or mental anguish in the future? 

Asked on May 1, 2009 under Accident Law, Texas

Answers:

L.M., Member, California Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If the purchaser of the vehicle was driving it and caused an accident, that driver is legally liable for the damage he or she caused to the other party's property as well as any injuries that incurred, regardless of whether or not he or she had any insurance.  However, if the driver who was not at fault had insurance, he or she (as well as his or her passengers) would be entitled to make a claim with his or her own insurance company for both Medical Payments (to cover medical bills) and Uninsured Motorist (UM) coverage.  UM coverage takes the place of the insurance the at-fault driver should have had and would cover those that were injured in the accident up to the policy limits for medical bills, lost wages, pain and suffering, etc.  Then, the insurance company would attempt to "subrogate against" (get the money back from) the at-fault driver.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption