The new vehicle was added to our insured's policy effective 11/28/12 but had dealer plates as it would not pass inspection at that time, and was then removed as the sale was voided. Is the insured's personal auto policy applicable to the PD claim and or physical damage claim?

Indiana Subscriber

The PAP provides liability coverage for the insured for the use of any auto. Also, the policy provides liability coverage for a newly acquired auto which is defined as a private passenger auto the named insured becomes the owner of during the policy period. In this instance, the fact that the sale was voided does not change the fact that the vehicle was owned by the insured at the time of the accident. So, either way, whether this was just a vehicle the named insured was using or whether the vehicle was considered a newly acquired auto, there is liability coverage for any BI or PD for which the named insured is liable.

As for physical damage, the vehicle can fall into a covered auto category as a newly acquired auto or into the nonowned auto category as defined in the policy, and there is coverage for the physical damage claim.

Based on your description of the facts, there is no exclusion to prevent coverage for the insured in this instance. The fact that the sale was voided after the accident is not relevant.