Car Insurance help?

Help! Car Insurance Company (in Canada) now denying coverage after said OK to buy car! Car bought! NOW WHAT??

  • My friend bought a car for her live-in boyfriend to drive in the winter (we're in Canada) as his Mustang was no good in the cold. Before she bought it (second-hand), she called her Insurance company (broker) to make sure they would cover him. She gave them all the info they needed in order to make a proper assessment, INCLUDING the fact that he has three speeding tickets under his belt. The broker said that he was OK and gave her a rate, & the go-ahead to buy the car. Now, the Insurance company sent my friend a letter saying that in fact, her boyfriend WAS NOT covered, and that they WILL NOT insure him, because of the speeding tickets he's incurred. Furthermore, they are asking HER for a letter from her confirming that she will NOT allow him to drive the car! So now, she's got an extra car and is severely out-of-pocket! Shouldn't the insurance company bear the responsibility of this, given they told her he was covered? She wouldn't have bought the car otherwise? Help!

  • Answer:

    To begin with, I doubt the insurance company said the words "You are authorized to buy a car" because that isn't something they do. Ever. And if you call your insurance company to ask about adding someone to your insurance, and give the information about the person you want to add, the numbers they give you are an estimate based on the information you gave, not something carved in stone. Once they investigated further they didn't want to take the risk he presented. And notified her of that in writing. If he drives a Mustang during the warm weather, who insures that? Why not add the second car to that policy? If he does drive the car, he will be driving uninsured. You may wind up with it being impounded, and your insurance being canceled as a result. To avoid any losses, sell the car, notify the insurance it is sold and get a refund on the insurance.

Nataliee... at Yahoo! Answers Visit the source

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the insurance company has the right to refuse to cover anyone- regardless of what an agent or broker says. it is the insurer who writes the policy, not the agent/broker. try going to another insurer for coverage. some insurer will cover him, but it may be extremely expensive if she has to pay for his mistakes. let him payt the cost, not her.

de bossy one

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