I am the owner of a car in the state of PA. I do not carry collison insurance on my vehicle. The car is legally parked on the street and unoccupied. At 6:00 AM, another car wrecks into my car. The police are on the scene and submit an accident report basically staing what I just said. The driver of the car is uninsured, but he does not own the car. The owner of the car is insured but she states that she sold the car to the driver back in November. Both parties, the driver and the owner are saying that money has changed hands, however the transaction was never finalized. The owner still has the car in her name and still carries insurance on the car. The insurance company is telling me that because both parties claim that money has changed hands, they are interperating that as a rental condition and denying my claim for money owed me to get my car fixed. What should be my next move?

What should be my next move?Hello l:

Sue them in small claims court. It's quick, cheap and easy.

excon

Hmmm, well... it depends, you could sue them all in small claims/district court. However, depending on the state you are in and the consumer protection statutes available to you, you might consider (if the other parties are essentially judgment proof) suing the insurance company under a theory of 1) duty to indemnify the owner with insurance and 2) violation of any statute that requires insurance companies to act in good faith and pay lawful claims.

Much will depend on the wording of the statute and the state and what the case law says in that state, but I know in my state you can get up to 3 times the damages, costs, and attorney's fees if the insurance company employs unfair practices (ie: not paying just claims in good faith). It's very difficult to say whether the insurance company is acting in good faith (if there is a clause that voids the policy for rental purposes-maybe) though I suspect you can make a pretty good claim that the car was in the process of being sold, but that since it did not cmplete liability still rests with the owner.