Insurable Interest in Stolen Autos—Archived Article

February, 1996

Recovery by Innocent Purchaser—Court Cases

Summary: Whether an innocent purchaser of a stolen automobile may recover insurance proceeds for subsequent damage to that auto varies from state to state, based upon the jurisdiction's position on the matter. Some states disallow recovery due to a lack of insurable interest in the auto, while others allow recovery based upon the significant economic interest the insured has in the vehicle. The following discussion is a summary of the approaches taken by various courts in answering this question and the arguments upon which recovery by the innocent purchaser has been either allowed or prohibited.

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