Involved in accident, state says no insurance

What is the name of your state? Alabama


Near the end of August 2002, I purchased a used car from a dealer. A week after receiving possession of the vehicle, it had to be taken back to the dealer for an agreed repair. During which time the dealer presented me with a "loaner" car at no additional charge.

My insurance was in the process of being transferred from my other car to the one I had just purchased, but was still within the time frame of the mandatory insurance law according to my insurance company.

The dealer specifically stated that the "loaner" car was insured through them, so I didn't think anything else about it as I would only have the car for no more than 2 weeks while my vehicle was being repaired.

About a week after I received the car another car stopped in front of me and I hit the other car in the rear-end. However there was no physical damage to either car, not even a scuffed place, but the driver of the other car claimed a back injury as a result of the accident.

When the police arrived at the scene to write up the report, they discovered that the "loaner" car I was driving had switched license plates and no insurance. But the officer on the scene stated that since I was not the owner of the car that was not my responsibility.

When I filed my SR-21 (accident report) with the state, I had to call the Dept of Public Safety for the additional instructions on filing a claim on a vehicle that I was not the owner of. The woman at the DPS stated that the car's owner would also have to file SR-21 and for me to fill out on mine about me the driver and state the owner's name and address which I did. I mailed it in and haven't heard anything from them since the first week of September.

Now I have received a letter from the DPS that states that my license will be suspended in 10 days if I don't comply and that I have to pay $3000.00 for failure to provide proof of insurance and I have 30 days to provide proof of insurance on the car or risk losing registration of my other vehicle. Along with an additional $200.00 to have my license reinstated.

I've called the attornies in my area today and none of them work in this area. I was referred to one attorney but he's out of the office until next Monday at which time my 10 days will be up and my license will be suspended.

Any ideas on what I need to do or can even do about this? I have no idea where to find the dealer I got my truck from that gave me the loaner car as he is no longer in business.

Thank you,

Randy

My insurance was in the process of being transferred from my other car to the one I had just purchased, but was still within the time frame of the mandatory insurance law according to my insurance company.
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But you DROVE the new car without insurance. and then back to the dealer, so it didnt have insurance on it when you left it at the dealer.

Then you get into a car, and have nothing in writing about insurance, or registration.

Then the used car dealer is out of business, do you have the title bill of sale for the new car?

Did you have insurance on the other car at the time of the accident?

Do you have any Proof you were adding the new car to your policy?

how about this, list the dates in order, when did your insurance end on car #1, what day did yu buy car #2, what day did you drive car #2 off the lot? what day if an did car #2 have insurance on it?

What day did car #2 go back to the dealer? did it have insurance on it that day?

what day was your accident?

So what happened to car #2??? what day you get insurance on it?

You see randy i think you were being a cheapskate, instead of making sure BOTH vehices were insured at the same time, you tried to cut some corners and it bit you in da azzz.

My old car was no longer in driving condition, although the insurance was still valid on it until October 1, 2002. On August 12, 2002 I found a truck that I liked from a used car dealer. Same day I went to my insurance company and asked which would be the best way, take out a new policy on the truck or transfer the policy on the old car that was to be junked. The insurance company said that it would be easier to transfer it as that would only take 5-7 days (excluding weekends) as opposed to 30 days for a new policy. From what I was told the State of Alabama has a grace period on obtaining insurance for a recently purchased vehicle and that all I would need to show them was the copy of my policy, since I had went ahead and paid them the same day for the next 6 months.

I went back to the Dealer on August 14 and purchased the truck, at the time the dealer told me to bring it back on August 19 and they would replace the belts that were wearing out, change the oil etc. I left there and went to my insurance company and they started the official transfer.

I took the truck back on August 19 and the dealer gave me a "loaner" car as a courtesy while my truck was being repaired.

I did ask the dealer about insurance on the "loaner" car and they said it had insurance coverage through them, it was not my responsibility because I didn't own the vehicle and it wasn't being rented or leased. They gave me a paper granting me permission to use the "loaner" car and said that would cover me incase I'm stopped or happen upon a check by police. Being told that I didn't think anything else about the insurance on the "loaner" car.

On August 28, I was on my way back to the dealer in the "loaner" car to pick up my truck (which the insurance policy was now covering) when the accident occured with the "loaner" car not my truck.

It was after the officer arrived on the scene of the accident and run the tag on the "loaner" car that I was told by the officer that the "loaner" car had a switched tag and the officer said that the dealer's insurance on the "loaner" car had lasped. Although there was no damage to either vehicle involved, but due to the "loaner" car's insurance being expired the officer had it towed back to the dealer at the dealer's expense.

I picked my truck back up and went straight to my insurance company and reported the accident to them and they gave me the SR-21 to fill out, which I did and mailed into the state on September 4, the day after I received the accident report from the police. But the insurance company said that since I was not the owner of the car involved in the accident and it was a courtesy car loaned to me under the impression it was covered that wasn't my responsibility, that fell in the lap of the actual owner who had allowed the insurance to expire.

The state seems to be seeing this differently.

On September 17 the dealer closed down (or was closed down).

I wasn't trying to be a "cheapskate" as you called it. If I had been I wouldn't have dished out the $748.85 for the next 6 months insurance premium on a truck I haven't even purchased yet, but was planning on buying.

As for proof, I have proof where my old car that was junked was still insured until October. I have proof where the transfer of insurance started on August 14 and was finalized on August 20 a week before the accident occured with the "loaner" car. I also still have the paper the dealer gave me granting permission to use that car that has the yes box checked on is this vehicle insured and where it asked by whom, it had the dealer's name and address.

And yes I do have the title for my truck that I purchased from the dealer.

I hope this clarifies your questions.


Randy