Legal Question in Insurance Law in California

Insurance on a newly owned vehicle denied because of an uninsured inoperative ve

This is what happened to my mother and I.

We purchased a used Van (Van A) on the evening of Thursday, July 15, 2004. We were unable to let our Insurance know about the Purchase the next day (Friday). On Saturday, July 17, 2004, we were in an accident. On Monday, July 19, 2004, we went to our Insurance Agent's office to relate what happened; we asked if we were covered on this van (Van A). We were told that, yes we were covered on newly owned vehicles for 30 days. The next week, we received a call from the claims rep. assigned to the case. He told us that they would be unable to provide coverage for the van (Van A) because we presently owned a vehicle which was not insured with them. Apparently our policy states they will cover a newly acquired vehicle if we let them know of the purchase within 30 days and they insure all other vehicles owned by us. The other vehicle is an inoperative van (Van B). This van has been in our back yard, inoperative for over a year, and is registered as inoperative with the California DMV. My question is: Even if state law does not require you to insure an inoperative vehicle, can an insurance company require you to do so, and can they deny coverage based on this inoperative vehicle?


Asked on 11/22/04, 8:06 pm

3 Answers from Attorneys
Armen Tashjian Law Offices of Armen M. Tashjian

Re: Insurance on a newly owned vehicle denied because of an uninsured inoperativ

You are not going to pursue your insurance carrier to pay for your loss, unless you hire an attorney.

I have done several of these cases on a contingency basis. If you would like a free evaluation, please contact me so we can get started.

Please make sure to keep your correspondence in writing and maintain copies.

Good luck.

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Answered on 11/24/04, 10:56 pm
Robert F. Cohen Law Office of Robert F. Cohen

Re: Insurance on a newly owned vehicle denied because of an uninsured inoperativ

I suggest getting a copy of your full policy including the exclusions and amendments, and have a lawyer review it. The lawyer might interpret the policy differently than does the insurance company and, if it is ambiguous, courts have construed policy language against the insurer who has the superior bargaining power.

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Answered on 11/23/04, 8:59 pm
Steven Murray Steven W. Murray, APC

Re: Insurance on a newly owned vehicle denied because of an uninsured inoperativ

What is the exact language of the policy? And how many vehicles did you state you owned on the application?

Why did you wait so long to notify the insurer, and how did you do so?

Did you get a letter denying the claim, and if not, demand one so you know what their true position is. Do all communication by letter, not phone, so write them and ask for their coverage decision in writing. Then compare the letter with the policy language. You might then need a lawyer to assist you.

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Answered on 11/23/04, 9:16 pm


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