Should You Tell Your Auto Insurance Company You Bought a Lemon?
Reader question:
I bought a used car. I think it is a lemon. Do I have to tell my California auto insurance company? Should I file a lawsuit?
Laura
Thank you for asking, Laura.
You absolutely can get your lemon car insured through a California auto insurance company. However, since the car is not in good condition, you might find that the California auto insurance company charges you more because it is a higher risk and also less safe than other cars. If you shop around a bit, though, you can find the best price on your car, which can also be done by applying discounts to your policy with your California auto insurance company.
As for filing a lawsuit, unfortunately you are out of luck since you bought a used car. According to California auto insurance law, a lemon is only defined when you are able to deal with it through the original dealer and manufacturer, so it is only a term for new cars. The only way to make sure that you don’t get a used car that is a lemon is to get a mechanic to look at it and determine that it’s in good shape before you sign any papers.
California auto insurance law doesn’t protect you from sneaks and liars, so you have to practice the utmost responsibility on your own part. You should also consider that many used cars are simply run down pieces of junk, and not necessarily lemons. Lemon mostly applies to new cars with persistent problems which couldn’t or shouldn’t have been cause by the standard wear and tear.
However, if you do buy a used car that was called a lemon when it was new, then your dealer is supposed to tell you that it was a lemon. If the dealer does not do so, then you can get something out of it. However, you should check your CLUE report first and make sure that the car is really a lemon.
Cheers,
Fashun Guadarrama.
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