Insurance to Compensate New Car Owner
Earlier this year in January, we were rear-ended at a red light and promptly filed a claim with the other driver’s insurance company. However, we’ve had a frustrating experience trying to reach them, as they seem quite unresponsive despite our repeated calls.
A month after the accident, we relocated to a different state and sold the car. Yesterday, we finally received a response from the insurance company, and they informed us that they would be compensating the new owner for the damage, despite the fact that we owned the car at the time of the incident and my husband was driving.
Is this a typical practice? It seems really strange to us!
It can definitely feel strange, but what you’re experiencing isn’t entirely uncommon in the world of insurance. Typically, liability insurance follows the vehicle and not the owner, which means that the insurance company may pay the new owner for the damage if they were the ones dealing with the claim after the sale.
Since you sold the car after the accident, it’s possible that the insurance company is treating the situation as if the new owner is now the one dealing with the repercussions of the accident. However, as the original owners and the ones who were involved in the accident, you also have rights to compensation for your damages. It’s important to document everything and possibly consult with a legal professional to understand your rights in this situation.
Make sure to follow up with the insurance company for clarification, and don’t hesitate to advocate for yourself and ensure that you receive the compensation you’re entitled to!