Car insurance

[adamc]

I'm in a bit of a predicament and could use some advice.

I bought a second-hand car back in December 2021. The car's ownership as the first owner is under my late uncle's name, who passed away in August of the same year. The transactions occurred between myself and my family, and my uncle's son, who is adopted.

Recently, as the car is due for LTO renewal, I discovered that it's still registered under my late uncle's name, not mine.

Coincidentally, my previous insurance was also expiring around the same time. When discussing its renewal with a new agent, she mentioned she could process the insurance under my name. However, she cautioned that there might be complications with processing claims, refunds, or payments due to the ownership discrepancy. She advised me to prioritize transferring the car registration into my name before proceeding with insurance renewal as potential complications and setbacks would likely occur, if anything were to happen.

What's more, the agent shared that while she was eager to meet her monthly quota and sell me an insurance package, she felt it would be best to hold off until I resolved the ownership issue. I'm grateful for her honesty. This also raised some red flags for me, as it seemed to confirm the seriousness of the situation.

Today, I spoke to another agent who asserted that I could still process claims even if the insurance and registration are under my late uncle's name. She said they will just ask for a death certificate and endorsement and there would be no problems in processing claims if an incident were to occur.

Adding to the complexity, there's another issue with transferring the car ownership to my name due to the passing of the owner and a missing document required. We're currently consulting with lawyers, but the process is taking longer than expected. Given that my late uncle's name is on the OR/CR, and whoever is listed there will be the name for insurance, it further complicates the situation.

Given the conflicting advice from the agents and my newfound uncertainty, I'm at a loss on how to proceed.

Now, I'm contemplating whether it's best to wait for the ownership transfer before purchasing any insurance. While it would be uncomfortable to drive without insurance in the interim, if the first agent's advice holds true, then having insurance now might essentially be of no use. As she mentioned, if anything were to happen, I'd still need to resolve the ownership issue before being able to process any claims. Or should I take a chance on insurance now, hoping the second agent's assurances are accurate. I’m just wondering if they are being truthful about the case, and not just trying to sell the package.

Has anyone else encountered a similar situation? I'd appreciate any advice on how to navigate this matter.

Thank you po!!

 

[affitapoux]

@adamc Hi OP, i work in insurance claims and both sides of the "conflicting statements" are technically true.

• You should absolutely have the ORCR in your name moving forward (just to make things less complicated), and its true that the policy will reflect the name of the owner in the ORCR. BUT:
• Standard private vehicle insurance policies do not explicitly state that insurable interest is vested only in the name reflected in the ORCR. Infact, it explicitly states that the policy will still respond to losses/damage even if the registred owner (which in this case is your late uncle) is not the one driving when the loss/damage occurred. As long as you are an authorized driver who is licensed, there shouldnt be any problem during claims.

You should still totally get car insurance, if you can. Knock-on-wood something happens, you will probably be only made to explain your relation to the registered owner, though you might also need to provide a notarized deed of sale of the car. A death certificate, in my opinion, is not relevant to the claim.

Honestly, this isnt that big of a deal, your agent should be able to handle this during claims.

TLDR: you should get car insurance, if you can.