To stay in your insurance company’s good graces, you may think that all you need to do is pay your insurance premiums on time. But that is not the case. An insurance policy is a contract, which means that you have to pay your premiums and adhere to the insurance company’s rules. Atlanta Personal Injury Law Group – Gore LLC’s blog series “10 Horrible Insurance Decisions That Make Auto Accidents Even Worse,” continues with a look at common situations and bad decisions that can ruin your insurance coverage.
#3 You Sold Your Vehicle To Your Child, But Still Carry The Insurance On It
A general rule with auto insurance is that to insure a vehicle, you need an “insurable interest” in it. That can be the vehicle’s owner, co-signer, or lienholder – anyone who would be financially affected if something happened to the vehicle. If you sold your vehicle to your son or daughter, that means you no longer own the vehicle, and no longer have an insurable interest. Your child needs to purchase his or her own auto insurance for it. (If they are a minor, you may still have to be on their insurance policy).
If you do not tell your insurance company about the change in ownership and your child crashes the vehicle, the insurance company could deny any claims. The insurance company could even accuse you of insurance fraud and cancel your policy altogether.
If you, or someone you know, has been injured in an accident and needs help with their personal injury case, call Atlanta Personal Injury Law Group – Gore LLC at (404) 436-1529. Stay tuned for our next installment of “10 Horrible Insurance Decisions That Can Make Auto Accidents Even Worse.”