QuestionQUESTION: I recently moved from Louisiana to California and had not changed my registration over yet and my truck was stolen. I did have my driver's license changed though. Will the insurance company have to pay me the value of the vehicle in California, since I will have to replace it here or the value in Louisiana? I was told by a former insurance adjuster that he thinks they have to pay the value here in California. The insurance company is trying to settle with Louisiana value. There appears to be a big difference in the value between the two states, with California being higher. On the police report the officer had me use my old Louisiana address due to the registration being there.
ANSWER: That is a very unique question. I think I can help you, but in order to be as helpful as possible, I would need a few questions answered. If you have the time to answer them, I will make time to try and point you in the right direction on how this claim should be handled.
1. Where did you purchase the insurance, Louisiana or California?
2. How long have you lived in California before the vehicle was stolen, and am I right in assuming it was stolen from a location in California?
3. Do you have the actual policy for review?
Your policy should determine the method in which the insurance company evaluates the value of your vehicle, either the actual cash value, or the replacement cost. Your insurance premiums are based on where you live. For example, there may be a higher theft rate in your new zipcode than there was in your old zipcode, therefore whether your insurance company had ample notice of your address change may become important.
I hope this helps, I am here if you need more detailed information.
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QUESTION: The insurance was purchased in Louisiana. I moved here only two to three weeks prior to the truck being stolen, and the adjuster stated that all information I provided them was investigated and checked out OK. I changed my driver's license like three days before the theft happened. I was going to have to visit two different offices to complete the vehicle registration and CDL license change over. The license issuing office does not do vehicle registration in this area.
I could not change my address with the insurance company until I changed registration due to Louisiana laws. I was actually going to go in and do this on the Monday following the theft, which was 12/31/2009.
The policy will pay actual cash value.
AnswerOkay. Well, it looks like they will only owe you for the actual cash value of the vehicle as it would be calculated in the Louisiana market.
This is simply a contract matter. The contract (policy) was written in and intended for Louisiana. Since you have a new residence location, then your risk will surely change, and thus your insurance rates, so unless your are now paying for a California risk, I think they have you. If Louisiana law states you can't change your address with your insurance carrier before changing your vehicle registration, this is news to me, and I would like to see the specific law just because I am curious. When you move, you move, you know? You seem to be in a catch 22 on that issue. In my opinion, the value on your vehicle should be calculated as it would apply in Louisiana unless your insurance company has changed your rates due to the move.
I hope this helps, even if it wasn't the answer you wanted. I have been adjusting claims for nearly 15 years. You have a first party claim, the contract controls, and it is a Louisiana contract. I disagree with the former adjuster.
JP
