Insurance Is Planning to Pay the New Car Owner
Back in January, we were rear-ended at a red light and promptly filed a claim with the other driver’s insurance. Since then, we’ve found their insurance company to be quite unresponsive, and despite our frequent calls, we didn’t receive any updates until yesterday.
A month after the accident, we relocated out of state and sold the car. When we finally heard back from the insurance, they informed us that they would cover the damage costs to the new owner of the vehicle, even though we were the ones who owned it at the time of the incident and my husband was the one driving, not the new owner.
Is this a common practice? It seems really strange to us!
It’s understandable that you find this situation confusing and frustrating. While I’m not an insurance expert, it isn’t uncommon for insurance companies to deal directly with the current owner of the vehicle, especially if that owner is the one currently liable for the damages.
However, the fact that you were the owner at the time of the accident does complicate things. Typically, the insurance should cover the damages to the car as it was your policy that should be in effect at the time of the accident. Since you sold the car after the accident but before the insurance settlement, it may have caused some confusion.
It’s worth reviewing the specifics of your policy and possibly reaching out to the insurance company for clarification on their policies regarding claims and ownership. If things don’t resolve satisfactorily, consider seeking advice from a professional or an advocate who specializes in insurance claims to help navigate this situation.