QuestionQUESTION: i was at a drive-thru banking center earlier (02/06) and pulled in to the rightmost lane. the lady at the window told me to move to either of the two lanes to the left of me. so i reversed the car far back enough for me to drive into the lane to the left of me. unfortunately i miscalculated and as i was driving into the lane i brushed against the thick pole to my right, so i reversed the car (which probably made it worse). there's a big dent on the rear door and large scratches extending from the rear to the front door. collision insurance should cover this right? thing is, we had just switched TO Geico from a different insurance company last february 4th (policy effective 02/04). the photo inspection was done 02/05 (no damage whatsoever yesterday). is the car covered? they might say that it isn't since we had just switched. i'm so worried. (we'll be going to the geico auto repair/inspection express center first thing tomorrow morning.)
the insurance policy for the car is now under my name, but the car is currently registered under my mom's name. we were going to transfer ownership to me this week.
ANSWER: Hello Gracie,
Well, the insurance policy dates are effective for a reason. The insurance adjuster will do an investigation and they will probably call the bank and verify the time and date of the accident and damage. This type of thing happens and insurance companies know it.
You have a way to verify your story and that is all that matters. Did you do any banking transaction? You can show your receipt for time and that type of thing.
The other issue of ownership could be a problem. The insurance company can argue that the policy holder (you) do not have an insurable interest on the car. This could bar coverage under the policy. Some insurance companies do not enforce this, but again some others do. I am not sure what Geico does.
Read more about insurable interest here: http://www.auto-insurance-claim-advice.com/Insurable-Interest.html
I hope this clear up any confusion.
Good Luck,
Anne
http://www.auto-insurance-claim-advice.com
---------- FOLLOW-UP ----------
QUESTION: I just called Geico and asked them about their terms on insurable interest.
They said that if the vehicle is titled to a relative (even though she doesn't have a license) that is also under my policy, they would cover it.
... Ackk but that could also change tomorrow depending on the mood of the adjuster, right? =(
Also, will my premium increase? Thanks for being patient with me.
AnswerWell, that is good news. After that type of statement, they will probably not change their mind.
Regarding your premium, there are a lot of factors that will come into play. Your prior claim record with this and other insurance companies, how much damage, how old you are. There are many other factors, and most of them are secret or non disclosed by Geico because that is how they asses risk (how they price their products and how they compete with other insurance companies).
The best person to ask is your agent. Some insurance agents can give you a very accurate estimate before hand.
Good Luck,
Anne
