IS A CAR DEALERSHIP LIABLE TO COLLECT PROPER INSURANCE FOR A VEHICLE THEY JUST SOLD BEFORE IT LEAVES THE LOT?
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IS A CAR DEALERSHIP LIABLE TO COLLECT PROPER INSURANCE FOR A VEHICLE THEY JUST SOLD BEFORE IT LEAVES THE LOT?
Asked on April 27, 2009 under Accident Law, Texas
Answers:
L.M., Member, California Bar / FreeAdvice Contributing Attorney
Answered 15 years ago | Contributor
Your question is a little unclear, I'm afraid. If you had an accident in your new vehicle before leaving the dealership's lot, but it technically was now your vehicle, your insurance should cover it. Even if you hadn't added it to your policy yet, there is typically a reasonable period of time the insurance company gives you to add it on and will cover it during that period if there is an accident. If, however, you were still test driving it, and the purchase had not yet been completed, the dealer's insurance would cover it for damages.
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