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I have a personal insurance policy in VA which list me, my

 
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  • Answered by:John
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Customer Question

I have a personal insurance policy in VA which list me, my wife and my son. My wifes vehicle (in her name) is listed as was my vehicle. I sold my vehicle and my wife purchased a vehicle under her new company name (a corporation). However, before we had called the insurance company to add the vehicle, my son was in an accident. My insurance says there is a 30 day grace period with which to report a new vehicle purchase. However, since the purchase was in a corporation name (my wife is owner and I am president) would that policy extend to the new vehicle ?

 

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State/Country relating to question: Virginia

Submitted: 1140 days and 16 hours ago.
Category: Family Law
Value: $28
Status: CLOSED
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Expert:  John replied 1140 days and 16 hours ago.

Your family policy:

You, wife and son, and what cars?

Corporation:

Did it have its own insurance? What cars? Is it at the same address? Do you have the policy?

What was the gap between purchase of new car and accident?

You may run into a problem with the vehicle being owned by the corporation because of various exclusions, primarily regarding business pursuits. Individual policies are not designed to cover commercial use of a vehicle. Some of the above answers may help, but I am thinking it may be tough.

Customer replied 1140 days and 16 hours ago.

My wifes vehicle and my vehicle were covered. I sold my vehicle and we purchased new vehicle under company name. and no, company does not have car insurance as I assumed as long as me or my wife signed for vehicle (as corp owners) policy would transfer

Accepted Answer

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Expert:  John replied 1140 days and 16 hours ago.

It's a bit in the gray area. Since the vehicle was likely being used for personal reasons at the time of loss and within the 30 day window, I think you can argue that it would be covered. They might argue it wasn't owned by a policy holder, but by a commercial entity. That's the debate and you may have to threaten a lawsuit or coverage determination action, called an action for declaratory judgment, to resolve it.

Expert TypeLawyer
Category: Family Law
Pos. Feedback: 91.7 %
Accepts: 79
Answered: 2/24/2010

Experience: Trial Attorney, licensed in FL, GA, & AL. Rated 10 / 10 by avvo.

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