Removing Car from Auto Policy After Unwinding Deal

[Guest]

Hello, i recently removed a car from my policy and replaced with a high end cpo car that bought..(trade in) ...tranferred the tags etc...all done at the dealership. I also called my insurer at the time and gave them vin number etc..it was all seamless. fast forward a week later and due to some service issues i was able to get the deal unwound, much to my relief. That said, the net result of the deal was i lost the car i traded in and will be getting a check for the trade in value for the car....now for the insurance question: i call my carrier and they said they needed proof that i did not own it. Now keep in mind this is a very well respected bmw dealership. When i brought the car back i received the check and a piece of paper that showed the value of the trade in and copy of the check. I asked what else i needed..ie piece of paper saying deal is dead or something of the like..he said we are making it as if the deal never happened, just like you wanted. I had already confirmed that financing was never on the books and i know that they are sending me the receipt once the tag is submitted to the dmv. My carrier started asking pointed questions like do i have bill of sale (yes) and did i leave the dealership owning the car. Since i was not sure where he was going with the discussion, i ended it. My concern is that i dont want to nullify anything about the unwind. When i called dealer they said they would be happy to talk to insurance company and didnt understand why the insurance company was pressing me on getting more than the returned tag, and that it is as if i was loaned a car for a week (which works perfectly fine for me). what am i missing here? What do i need to do to gain closure? Is the dealership doing anything illegal here...i know car unwinds happen from time to time and this is an unfortunate situation..what do i tell my insurance co. To be above board while not jeopardizing the unwind. Keep in mind, the dealership cares greatly about its rep and that is why they were so amenable about doing this.

 

[Biggdogg]

Your insurance company is merely wanting to verify the situation. While these circumstances do come up now and then with dealerships, it isn't something the agency sees much of, and they're trying to cover themselves.

If you can show them the original bill of sale when you bought it, and something showing the dealership became the owner again when it was returned, that should take care of it.

 

[djs]

Actually, the insurance carrier insured the car while you had it, pretty much shouldn't be unwound. Truth is, it isn't going to make a big difference anyway.

Lets say you crashed the car while you had it. Would you want the insurance company to pay for the damage? Of course. Like I said, they insured the car. The car was legally yours during that time. Yes, the dealer is unwinding it, but it was still yours and the insurance carrier was still on the hook for the time you drove it.

In reality, you had the car for a week. Your premium was what, $120 a month? $30 for the week? Don't sweat it.

Dan