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Insurance question on car storage


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Ok, so I have a car in my garage that I’m keeping for a couple of months for a friend.  Value of the car is into six figures.
 

He carries full  insurance on the car.

 

Hypothetically, if something happens to the car while in my care, and his insurance pays up, can his insurance company come back on me and sue for loss?

 

Flood, fire, tornado, earthquake...you know, all the bad stuff...

Edited by trimacar (see edit history)
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If you live in USA, it would seem likely insurance companies and their legions of legal departments could try to pursue any loss from you and/or your policy carrier, but I would recommend consulting your agent/carrier for clarification.

 

I can still recall a time about 15 years ago when nearly eight figure car was delivered to my care and stayed in the shop for almost 3 months.

I consulted my agent and temporarily upgraded (for the aforementioned duration) my policy to cover any and all potential unexpected outcomes.
And while I live only 5 minutes away and have all appropriate monitored alarms, etc, first three nights I had to get up in the middle of them and drive to the shop, just to make sure everything was fine.

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"I got 50X what the insurance company offered when my car was damaged on a friends property. Plus a Pierce-Arrow phaeton!" Call 666-666-6666.

 

dowecheat.jpg.2a159ad265e01a979381757687734c18.jpg

 

I sold one of my cars over the weekend. The buyer drove 300 miles home on my plates and insurance. I expect to see the plates in the mail. It is a judgement thing.

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4 minutes ago, 60FlatTop said:

 

 

 

 

I sold one of my cars over the weekend. The buyer drove 300 miles home on my plates and insurance. I expect to see the plates in the mail. It is a judgement thing.

 Been there, done that, never got my plate back!

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1 hour ago, trimacar said:

 

Hypothetically, if something happens to the car while in my care, and his insurance pays up, can his insurance company come back on me and sue for loss?

 

      Tried 3 times to reply.   Yes, they can, but they must prove you were 

       liable.   Did you start/cause the Tornado, Flood, Fire or Hurricane?   

    

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5 minutes ago, Paul Dobbin said:

      Tried 3 times to reply.   Yes, they can, but they must prove you were 

       liable.   Did you start/cause the Tornado, Flood, Fire or Hurricane?   

    

Well, sure don't plan on starting anything!  But I understand your point.  If I put a torch to a gas tank, I'm liable.  If lightning strikes the house, I'm not.  Thanks dc

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In I always give and keep a signed bill of sale (Florida HSMV82050).

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If there is a loss and you find yourself on the wrong end of a law suit you can explain to your lawyer " But I'm sure I'm in the clear. I listened to some guy's advise on a chat forum"......Oy Vey...........Bob

Edited by Bhigdog (see edit history)
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57 minutes ago, 60FlatTop said:

"I got 50X what the insurance company offered when my car was damaged on a friends property. Plus a Pierce-Arrow phaeton!" Call 666-666-6666.

 

dowecheat.jpg.2a159ad265e01a979381757687734c18.jpg

 

I sold one of my cars over the weekend. The buyer drove 300 miles home on my plates and insurance. I expect to see the plates in the mail. It is a judgement thing.

Mr. Bernie you are a brave man. My brother lives overseas and on his visits back to the states he stays with my wife and me. It’s kind of expected that I have to provide him a car to use for the duration. The first time I did that I asked my then agent about coverage while he was driving it. He said well maybe if something happened they would cover it as the insurance company really only has to cover drivers in my immediate family.  He did say off the record that he would probably let his brother use his car so...  that was years ago and never an issue yet. I mention this as I know my brother and trust his driving.  A Stranger, maybe not so much.

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a) With Geico it is easy to add someone else to the policy. I did that when my son (has own home) needed my Jeep for a while

b) Someone as described needs to either provide their own insurance or pay to add to yours.

c) When a car is sold or stored for another you need to retain a clear, signed, release of liability (bill of sale). This protects you.

d) Last time I looked, Orlando had more lawyers than doctors. Many advertise on TV. See Henry VI, Part 2, Act IV, Scene 2.

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Years ago I took out and have maintained an umbrella policy that would cover significant claims. It has not been very expensive and in other dealings with insurance has opened doors by signaling I am a preferred type of customer. I also have a good Samaritan policy that covers me if I try to help someone and damage them in the process.

 

The guy who took the car was a lot younger than I. I knew he would be more responsible than someone my own age and less likely to try teaching me a lesson.

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Unless you blatantly destroy or damage the car, I doubt they would do anything.  If the worst would happen and his insurer decides to come after you I suppose that YOUR insurance would kick in.

 

 

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52 minutes ago, Bhigdog said:

If there is a loss and you find yourself on the wrong end of a law suit you can explain to your lawyer " But I'm sure I'm in the clear. I listened to some guy's advise on a chat forum"......Oy Vey...........Bob

I understand, I just thought I'd put the question out there.  I already have on my "to-do" list calls to two of my insurance carriers.  I do agree that a lot of advice given here is valuable, but verification is necessary in most cases!  thanks dc

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2 hours ago, trimacar said:

Ok, so I have a car in my garage that I’m keeping for a couple of months for a friend.  Value of the car is into six figures.
 

He carries full  insurance on the car.

 

Hypothetically, if something happens to the car while in my care, and his insurance pays up, can his insurance company come back on me and sue for loss?

 

Flood, fire, tornado, earthquake...you know, all the bad stuff...

 

 

He should let his insurance company know that it is temporarily being garaged with you.   All auto insurance,  classic or otherwise, is predicated on where the car is stored.

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2 hours ago, alsancle said:

 

 

He should let his insurance company know that it is temporarily being garaged with you.   All auto insurance,  classic or otherwise, is predicated on where the car is stored.

Now, that’s a solid piece of advice.  Thanks.

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 I was once working on a very expensive truck and I asked my insurance agent to add a temporary 10 million dollar policy to cover me.

 The agent said it would be too expensive, so he told me, to have the owner of the truck  add me to their policy as an additional insured. There was no cost to the owner to do so.

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4 minutes ago, TTR said:

And what was your agent’s advice ?

Haven’t done it yet, waiting to hear from owner how much he has it insured for...

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1 hour ago, trimacar said:

Now, that’s a solid piece of advice.  Thanks.

 

Probably, many of us don't know for sure.

A few answers have been helpful, and I'm hoping to learn

something.  But we sure are going off-topic with this thread!

Edited by John_S_in_Penna (see edit history)
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7 hours ago, trimacar said:

Ok, so I have a car in my garage that I’m keeping for a couple of months for a friend.  Value of the car is into six figures.
 

He carries full  insurance on the car.

 

Hypothetically, if something happens to the car while in my care, and his insurance pays up, can his insurance company come back on me and sue for loss?

 

Flood, fire, tornado, earthquake...you know, all the bad stuff...

Anybody can sue for you anything (your insurance would pay defense costs), but unless you were somehow proven to be negligent in causing the loss (like if you accidentally-or intentionally-started a fire), you would not be held responsible.  The Mother Nature stuff you mentioned would not trigger any causation on your part.  (I do this for a living.)

 

Generally, temporary conditions do not affect coverages.

 

Questions would arise to determine if he paid you for the storage, and if somehow this was a business for you.  If it was, another set of liability standards would apply.  

Edited by 39BuickEight (see edit history)
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I suppose you could ask the owner to sign a waiver to relieve you of any liability in advance.  I am not a lawyer, but would certainly consult one in this case.

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3 hours ago, 39BuickEight said:

Anybody can sue for you anything (your insurance would pay defense costs), but unless you were somehow proven to be negligent in causing the loss (like if you accidentally-or intentionally-started a fire), you would not be held responsible.  The Mother Nature stuff you mentioned would not trigger any causation on your part.  (I do this for a living.)

 

Generally, temporary conditions do not affect coverages.

 

Questions would arise to determine if he paid you for the storage, and if somehow this was a business for you.  If it was, another set of liability standards would apply.  

 

Totally agree..

 

Having sold insurance for a few years I'd have a ton of questions for trimcar and for the owner, and they should have a ton for the agent in return.

 

You nailed it, negligence and business are the key words here and God forbid, negligence can happen in many many unforseen ways in a tortasses eyes. 

 

Tortass is spelled correctly....trust me ;) 

 

Don't even get me started on what happens if the neighbors tree falls (randomly or by wind) and smashes the car while in storage... good luck sorting that one out TC. 

 

 

Edited by 30DodgePanel (see edit history)
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13 hours ago, plymouthcranbrook said:

Well I know what happens when a neighbors tree falls and damages your garage. You or your insurance(or both depending) pay for it.  Act of God clause.

   That's true.  However, if you had advised the neighbor that the tree

    appeared dead and you were worried about your garage beneath it,

    and he never addressed it, you would have a liabitly claim against

    him.   Keep in mind you'll need to prove you warned him and he did

    nothing.  

    Your insurance would pay the damage and subrogate the claim to his

     liability insurance.   

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23 hours ago, alsancle said:

 

 

He should let his insurance company know that it is temporarily being garaged with you.   All auto insurance,  classic or otherwise, is predicated on where the car is stored.

 

So if the owner of the vehicle does not notify the insurance company of the change in storage location could that be used as a reason to deny a claim on the vehicle??? Given the 6 figure value of the car, one does have to wonder. Is there any fine print in the policy regarding storage location (that could be a concern for you) that is unique to this vehicle due to it's value?

 

I think it would be prudent to ask for a copy of his policy so you could sit down with your insurance agent and review both his policy and your coverages that would apply to his vehicle to see if you have any potential gaps or exposure.

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8 minutes ago, Paul Dobbin said:

   That's true.  However, if you had advised the neighbor that the tree

    appeared dead and you were worried about your garage beneath it,

    and he never addressed it, you would have a liabitly claim against

    him.   Keep in mind you'll need to prove you warned him and he did

    nothing.  

    Your insurance would pay the damage and subrogate the claim to his

     liability insurance.   

Rental property of a small landlord.  The $100 it cost me wasn’t worth the trouble but coincidentally a couple of years later she had the whole row of trees on our mutual property line cut down. And a couple of others on the opposite side line as well.  

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I have asked the owner of a major insurance company to answer this and found out it is not completely simple.  In my new car dealership days if a car was damaged at my dealership the issue of care, custody and control came in several times and in SOME cases my garage keepers policy kicked in.  If I recall correctly that was always in the case of negligence on our part.  I was never held responsible for things like hail storms, etc.  In any case, I am getting a call back this afternoon from one major company to explain their view on this topic.

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The above is the best advice.  In talking with our insurance company (a major player in the antique car hobby) and one who not only handles our building but my home as well.  MY policy would cover even if there was negligence but he still recommended to make sure whoever you are storing the car for has coverage.  He also said that it would not be difficult to put a rider on the policy for this specific car.  Depending on the insurance policy you have your situation might be different.  

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I send a email and fax to the insurance company if the car is in an unusual location. They don't have a problem with it, but we are good customers. You are ALWAYS at risk storing something for someone. 

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Although not highly valuable, my policy says that I keep my car parked in my locked garage at my listed address. I have never been on an overnight trip with the car, but in the event that I am lucky enough to do so I would def. contact my agent and tell them of my intent.

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I asked JC Taylor and they said an occasional drive to exercise a car and travel or even an overnight trip with overnight stop to a car show is covered, just must have another daily driver.

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