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Marsha411JD, Attorney
Category: Legal
Satisfied Customers: 20357
Experience:  Licensed Atty, 29 yrs exp in the practice of law.
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Insurance company is denying a claim in Texas. Coverage was

Customer Question

Insurance company is denying a claim for damage in Texas. Coverage was added the same day loss occurred.
There is a question as to coverage and they are about to deny claim. If the title or bill of sale was signed on day coverage was added, I should be good.
If it was signed the day after, does this constitute ownership on my part? The seller and I know each other well. We had a verbal agreement over the phone prior to the date of loss for me to purchase at a specified price, but, title may not have been signed over yet- can't be sure. Deposit exchanged hands on day title was signed over- this may or may not have been day coverage was added.
1.) Does a verbal over the phone constitute a sale for purposes of my situation?
2.) If title signed on day coverage added, does this constitute a sale for my purposes?
Thank you.
Submitted: 1 year ago.
Category: Legal
Expert:  Marsha411JD replied 1 year ago.


Thank you for the information and your question, however, some of the details are lacking in order to respond properly. First, just for clarification are we talking about a vehicle? Second, who sold the vehicle to whom? Who had the accident in the vehicle? The old owner or the new owner? Why is it not clear about what day the title was signed by both parties? Whose insurance company is denying coverage? Old owner or new owner?

Customer: replied 1 year ago.
Travel trailer attached to my vehicle.
My landlord sold the vehicle to me. I say 'sold" because I'm not sure if it was a binding sale over the phone.
It was side swiped- hit and run- while attached to my truck.
We can't remember- it was over 2 months ago.
My insurance company is about to deny coverage.Thank you.
Expert:  Marsha411JD replied 1 year ago.

Thank you for your reply, however, the key to answering your question is when title actually transferred. In other words, the sale over the phone is not the transfer of title, or even a binding sale for that matter, there must have been an actual title transfer (assuming this is a trailer that must be titled) or bill of sale completed. Whatever day that title was signed was when ownership transferred and when insurance coverage would start. In other words, you can't have coverage on a vehicle you don't own. If the accident occurred before title was transferred or bill of sale was completed, then the seller's insurance should cover the damage.

Please feel free to ask for clarification if needed. Once you no longer need further assistance, then if you could take a moment to leave a positive rating in the box above, I will receive credit for assisting you today. Thank you.

Customer: replied 1 year ago.
Is the verbal agreement to buy over the phone considered a contract in Texas in this scenario?
Expert:  Marsha411JD replied 1 year ago.

No, as mentioned, it would not be enough to transfer ownership. There must be an exchange of money and then some additional act to transfer ownership, i.e. bill of sale or signature on a title.

Expert:  Marsha411JD replied 1 year ago.

Hello again,

I wanted to touch base with you and make sure that you did not have any further follow up questions for me from the answers I provided to you on the 8th. For some reason, the Experts are not always getting replies or ratings (at the top of the question/answer page you are viewing or in the pop up box for this question), which is how we get credit (paid by the Site) for our work, that the customer thinks have gone through. In your case I have not received a rating. If you are having technical difficulties with reading, replying or rating, please let me know so that I can inform the Site administrator. Please note that Site use works best while using a computer and using either Google Chrome or Firefox.

In any event, it was a pleasure assisting you and I would be glad to attempt to assist you further on this issue, or a new legal issue, if needed. You can bookmark my page at:

Thank you.