The risk is that the insurance company pays the entity entitled to the funds based on who was insured at the time of the accident or not covering it at all since you would be trying to claim damage on a vehicle that you owned that occurred prior to you owning it.
You’re essentially trying to get them to cover a totalled vehicle that you didn’t disclose was totalled when you asked them to cover it with you as the owner.
This sounds so close to insurance fraud.
You purchased a policy where you probably told them it’s a lease. And now you’re the sole owner of the vehicle.
Can’t the insurance company just deny the entire claim on the fact you lied about ownership - if they figure it out.
Neither can you change the owner on the policy since the car is deemed total loss by the insurance.
The insurance fraud statements and scenario where insurance deniying payment because of change in ownership seem false to me.
More realistic concern is running into “title jumping”. I won’t be able to sign off the title to insurer without transferring it to my name first. I would need to pay sales tax and hope that DMV transfers title without raising flags regarding total loss.
By the way, I have notarized bill of sale and clean title on hand.
My options at the moment:
- Do nothing and let BMW collect settlement. They will need to request duplicate title since original one has my name on it. In this scenario they will refund me my
- Take paperwork to DMV and complete the purchase process by reporting this sale - this would prevent BMW from getting the duplicate title and deniying them a chane to keep insurance settlement since they won’t be the owner anymore. This will potentially lead to some $$$ losses or gains.
I’m curious why you think this matters since they are the ones entitled to the payment based on the coverage that was in place at the time of the covered incident.
Insurance company is in possession of the car and they need the title before selling car at an auction. The question is not about the past ownership, but instead which party can release title to insurance company at the moment.
Curious as to what happened after all this?