Online Auto Insurance: Mercury Ruled Not Liable in California Court Case

RANCHO CUCAMONGA, CA, January 16, 2012 (Press-News.org) A recent California court decision highlights the need for state residents who buy a car from a private party to make sure that they are covered under a policy before driving it away, according to Online Auto Insurance (OAI).

New car buyers in the Golden State must purchase California auto insurance for any car they plan to drive, but consumers may be uncertain when the coverage provided by the seller's policy ceases. And that issue played a large role in a recent California court decision.

The state's 6th Court of Appeals found that Daniel Thiel--who purchased a used BMW in 2008 and was struck by a drunken, uninsured motorist while driving home--was not covered by the policy purchased by the vehicle's previous owners, even though the vehicle's title had not yet been turned over.

Thiel was not insured on his own at the time of the crash--in which he suffered serious leg injuries--and argued that he was covered by the policy the sellers had bought from Mercury Casualty Co.

But the court upheld an earlier ruling that the sellers had relieved themselves of liability as of the time Thiel took possession of the car by mailing transfer documents to the state Department of Motor Vehicles within five days.

The case not only clarifies a somewhat obscure issue, but it also demonstrates the critical need to make sure you are covered for all risks of the road--including uninsured motorists.

California law requires that all motorists carry enough liability coverage to pay for damages of up to $15,000 per person and $30,000 per accident, as well as $5,000 in property damage caused by policyholders.

Source: http://www.insurance.ca.gov/0100-consumers/0060-information-guides/00 ... ce-101.cfm

But liability insurance pays only for damages caused by the policyholder, and the Golden State is one of many that do not legally require drivers to carry uninsured motorist coverage, despite the estimated 15 percent of the state's motorists who were uninsured as of 2009, which is 1.2 points higher than the national average.

OAI advises motorists in California and other states to ensure they have policies in place before they hit the road and to consider purchasing policies that cover them to a greater extent--including for uninsured motorists--to protect themselves in case of a serious accident.

To learn more about this and other car insurance, readers can go to http://www.onlineautoinsurance.com/california/ where they will find informative resource pages and a helpful rate-comparison generator.