Sold Vehicle Still a Covered Auto

January 27, 2014

Our policyholder sold his vehicle to a private owner and never notified the insurer so the vehicle could be removed from the policy. A short time thereafter, the vehicle was involved in an auto accident. It turns out the private owner did not transfer the title into his name, nor does he carry an active policy of insurance for the vehicle purchased from our policyholder. Is there liability or collision coverage for this loss under our insured's personal auto policy?

Connecticut Subscriber

Presuming the vehicle was still listed on the policy as a covered auto and shown in the declarations, and since the named insured is an insured for the use of any auto, if your insured is found liable, the PAP will apply. There is no applicable exclusion based on the information you have provided. As for collision coverage, as long as the car is a covered auto by definition and the PAP has collision coverage and there is no applicable exclusion based on the facts of the accident, the PAP will apply to a collision claim.