Paid for car insurance via dealership, no coverage record; need help.

Question

I bought a car on March 7, 2025, with the requirement to have full coverage insurance in order to drive it off the lot. The car salesman informed me that he would set up insurance for $401. I paid this amount via Cash App but did not receive a declarations page or any official documentation. On March 15, I was involved in a car accident where I was not at fault, and there was no record of my insurance policy with the supposed insurer. I have receipts of my payment on Cash App. The salesman had promised the insurance details would be emailed, but I never received them. What can I do to recover my money and seek reimbursement for damages to my car?

Charles Candiano · Answer

First things first.  Begin by contacting the dealer and requesting the name and contact information of the insurance company.   In the future, avoid the situation by comparing various insurance carriers ahead of time and advising them of your intention to purchase this make and model vehicle so that you can be essentially "preapproved" for insurance of a known quantity.  In other words, you would know your coverage limits, your deductibles, whether you have comprehensive coverage, and whether you have towing and car rental.  Whenever you purchase a new car or a late-model used car, you should always purchase GAP Insurance, in addition to your auto coverage.  If you were in an accident that totaled your car, no insurance company will pay more than the fair market value of the vehicle.  Most car buyers owe more money on their car loan than the fair market value of the vehicle for the majority of the loan.    Without gap insurance, you could find yourself in a situation where your car is totaled and you still owe several thousand dollars to the finance company.   
 
Some dealers who cater to clientele with compromised credit scores and/or poor driving records require that you purchase insurance that is property damage only, with the lien holder as the beneficiary.  People don't ordinarily think of insurance in those terms, but if you don't ask, you just don't know.  If it turns out that is the type of insurance that you purchased, it will take care of repairing your vehicle, if necessary, but nothing else.  Worse still, $4,800 is a lot to pay for minimum coverage or less. 
 
You state that you are not the at-fault driver.  In that situation, the other driver's insurance should pay to repair your vehicle and compensate you for any injury, unless the other driver was uninsured.    If the other driver was uninsured and that is noted on the police report, send the police report to the Secretary of State with an estimate for the repairs on your vehicle.  If the other driver's uninsured status is not noted on the police report, but you learned through subsequent correspondence that the policy had lapsed, request a letter from that insurance company, on their letterhead, stating that the policy had lapsed on the date of the accident.  They will be happy to send it to you.  You can forward that letter to the Secretary of State with an estimate for the repairs on your vehicle.  The Secretary of State will suspend the other driver's license until the other driver pays you in full or enters into a repayment program that you accept. 
 
If you were injured, consult an experienced personal injury attorney.  Personal injury attorneys do not handle your property damage claim but can generally offer advice on how the system works.  Good luck.

Q: Paid for car insurance via dealership, no coverage record; need help.