Did you know that if you leave your car at a shop and it’s sold or stolen you may not be covered under insurance?

September 24th, 2014

Did you know that if you leave your automobile or recreational vehicle at a shop and the shop turns around and sells and/or steals it, than you may not have coverage from your insurance policy?

The Alberta automobile policy excludes loss or damage “caused by the conversion, embezzlement, theft or secretion by any person in lawful possession of the automobile under a mortgage, conditional sale, lease or similar other written agreement.”

Many motorhomes are covered under the automobile policy. Certain travel trailer policies (motorhomes as well) have a similar exclusion. They also exclude coverage if you have voluntarily parted with title, even if you do not get paid by the purchaser. In fact, many recreational vehicle polices exclude intentional loss or damage caused by those you have entrusted your property to.

It is recommended that you leave your automobile, recreational vehicle, or motorhome with a reputable service shop and/or dealer for servicing or for sale purposes as your coverage may be restricted when in the possession of these types of businesses.

If you want to learn more about your automobile insurance policy, please contact one of our expert brokers.

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