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Who Owns The Car After A Claim?

November 25, 2005 by Jonathan Stein

Someone reported that they had their car stolen. The insurance company was processing the claim when the police called and the car was found. Who owns the car now?

This is an interesting question. If the insurance company had just received the claim and had not done anything, then the insured still owns the car. If, on the other hand, the insurance company had paid the claim, then they own the car. But, before the claim is paid, who owns it?

This is a bit trickier than it seems. If the insurance company has made an offer, and they are sending a check, I believe that they own the car. If they have made an offer, but have not sent the check, then you still own the car. Each situation, however, is a little different. Some insurance companies want you to sign over the title before they will pay you. In that case, it is clear that once you sign the title, you no longer own the car.

If this situation comes up, your best bet is probably to talk to the insurance company and come to an agreement. You may want the car. They may not want it. Figure out what works best and resolve it that way.

Categories: Auto Insurance, Claims

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