I traded in my car and did not update the insurance for my new car because I was told I had 30 days to do it.?

Question

I traded in my car and did not update the insurance for my new car because I was told I had 30 days to do it. My banking institution is now charging me $400 for one months worth of insurance. I need to appeal that decision. Where can I find the Utah law states how long I have to update my insurance.

Details. Thanx for all the responses so far, but everyone so far has been wrong! Read my question again then consider the following. If you bought a car Friday at 10p.m. and Sat-Mon, because Monday is a holiday, does the insurance I have on my trade in cover me on those days, and if so for how long. If you had to call your insurance the second you got a new car, the dealership would tell you to!

If anyone can show me this law and where to find it, I will give them the best answer rating

Answer 1

Lots of people are told lots of things, many times by people that aren't qualified to give the advice that is correct. If you were told you have 30 days by your insurance broker, it is one thing, but if you were told you have 30 days by the clerk at 7-Eleven, or a work buddy, (or a car salesman) it is another thing totally. Read your wordings. If your policy does not specifically state you have 30 days coverage for a newly aquired vehicle, you do not have 30 days, and the bank is well within legal rights to put insurance on it to protect the investment. In Manitoba, where I am a licenced insurance broker, you have 7 days, period, to transfer, and then you have no insurance on the new car. And do not ask your broker or agent to back-date insurance. It is illegal, and will cost him his licence.

Answer 2

You were told wrong. Any time you make a change you need to notify your insurance. Some states did have a rule which basically said "...as soon as you can notify your insurance, but not over 30 days..." on the books, and for some reason that became urban legend that you had 30 days to get insurance...or plates...or a variety of other things. No, it's not true. It's also not true that you have 30 days grace after your tags run out, so if you run into that, don't believe it either.

The bank is charging you because you drove the vehicle a month without insurance, and they had to put insurance in place to protect their interests.

You might go find whoever told you that you had 30 days and ask them to give you the $400 back though.

Answer 3

This isn't a matter of Utah law, it's a matter between you and your finance company. The only thing Utah wants is you to be insured with the state minimum liability limits the day you buy the car. They don't care about comp & collision....

You signed a contract stating you would maintain Comp & Collision coverge on the vehicle. This is seperate from your insurance policy...if your policy sys 30 days to add the vehicle, then it's 30 days. But a reasonable prudent person is going to contact their insurance company immediately about a new car purchase.

Just call your agent & add the car & tell them when you bought it. If it's past the 30 days, you owe the finance company for the coverage from date of purchase until you add comp/coll onto the vehicle. Otherwise, once the finance company receives proof of valid coverage from the date you bought the car they will cancel the coverage effective the same day.

And before you go getting mad at your insurance company....why didn't you add the vehicle immediately? How are they supposed to know you bought a new car?

Answer 4

You probably need to get a letter from your insurance company indicating what the policy says. If the policy says that you're automatically covered on a newly purchased vehicle for coverage for the 1st 30 days that will probably help. That's just for a new car. When you are replacing a vehicle with another vehcile you have until the end of the policy period for coverage. Utah may have some differences, but I'd start with your insurance company.

Answer 5

I traded in my car and did not update the insurance for my new car because I was told I had 30 days to do it.?

Looking 4 auto insurance companies? one of the top to get best auto insurance company, rates and prices is: http://www.cheapinsurance4auto.info

Answer 6

you must of misheard someone as there is no law that states that.

the day you transfer title of ownership of a vehicle...THAT DAY you must contact the insurance company or be held personally liable for any damage, injuries or accidents.

the bank owns the car...not you. they know if insurance is on their car or not. since you choose not to insure THEIR car, they did and are now charging you. there is no way to fight this, no way to get your money back. the most you can do is go back and slap whoever told you 30 days.

30 days is for license plate, takes that long for title to transfer and to get to you, etc. Insurance is instant....you should be on the phone with them before you even drive off the parking lot in the new car.

legally the bank could press charges on you for not insuring their car like promised by the contract. the police also could arrest you and fine you for driving without insurance.

Answer 7

contact your insurance agent and see if they can back date your insurance, the other car had insurance. Try it. If that does not work try being really nice to the people at the bank they can waive that fee.