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Car insurance purchased through dealership

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d623hart

Junior Member
I live in California, recently I purchased a used car from a dealership. To take the car off the lot I had to have some proof of insurance which I could not provide (my other car was in the name of my father) so I purchased a one month policy through them (very expensive). Long story short, they forgot to charge me and two days later they called me saying I had to come by and leave a check. In that time I called an insurance company, purchased a policy, had them fax it over as proof. However the dealership is still insisting that I pay (which from my point of view makes no sense, to have two policies) Looking at what I signed it states nothing of any kind of payment, I signed something that basically points out what I'm covered, however I can't find anything that binds me to make any kind of payment after the fact (just seems like a case of negligence on their part). Might there be any inferred legal repercussions that I am not aware of? Should I just pay them to avoid potential damage to my credit? Or am I in the right? I keep getting phone calls everyday saying that I must pay.
Thank you,
Daniel
 


CraigFL

Member
I'm curious if you would have produced the sales receipt for an LEO that stopped you, proving you had insurance. You entered into a contract with the dealer to have them provide a policy so that you would not be breaking the law. And now, because of circumstances, you don't want to pay for it? I'm sure the dealer wants their commission on this insurance sale also..
 

racer72

Senior Member
Did you finance the vehicle? If so, I would bet the insurance sold by the dealer was not liability insurance but collatoral insurance. This covers any potential losses that could be incurred by the dealer, not you, if you were involved in an accident.
 

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