Will my car insurance cover damages to a vehicle that is no longer in the owner’s possession?

I recently backed into a vehicle, causing minimal damage. I called the police and they located owners who were not in the vehicle at the time of the accident. The claim was reported, and a couple of days later the owner called me about insurance. They said the dealership would take it back in on trade before insurance adjustors could assess damages. Will my insurance still be responsible for covering the damages?

Answer
What an unusual situation to be in! Luckily, you’ve covered all your bases by immediately calling the police to alert them of the accident.
Your car insurance will likely still cover the damages to a vehicle that is no longer in the same owner’s possession. However, you should call up your agent and let them know that the vehicle has been traded in.
It is possible that going forward with the claim, your insurance company will work directly with the dealership rather than the previous owner’s insurance company. In any case, there should be little to no difference between this claim and any other.
If you find that as a result of the accident, your car insurance premium increases substantially, you should check out the Jerry app to see how much you can save with a new policy.
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Chloe Jenkins
Answered on Dec 29, 2021
Chloe has a BA in Communication and Media Arts from Montclair State University and more than four years of experience in content writing, editing, and research. Before getting behind the keyboard at Jerry, Chloe was an Assistant Coordinator at her university and a film enthusiast working for the Montclair Film Festival. When she's not writing about car insurance, she spends her time with her pets, playing video games, or enjoying long weekend hikes.
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