Reimbursement For Auto Insurance | Nordgren Law: Automotive Litigation and Lemon Law

When purchasing a product, whether it be a large piece of agricultural equipment or a new car, there are certain expenses consumers pay beyond the sale price. For example, consumers must pay sales taxes, registration fees, financing costs, and other expenses.

Fortunately, if that new car turns out to be a lemon or if the agricultural equipment does not function because of some defect that existed when it was purchased, a consumer is entitled to get those additional expenses reimbursed. However, in the context of a new vehicle, there is another recoverable expense that is sometimes overlooked in a lemon lawsuit or redhibition action: auto insurance.

Because drivers are legally mandated to buy auto insurance in Louisiana, just as they are mandated to pay sales taxes, courts have held insurance payments are recoverable as expenses occasioned by the sale. Depending on the circumstances and the amount of time the consumer owned the vehicle, this can be a substantial aspect of damages.

Although expenses occasioned by a sale are often far less than the product being purchased, these additional expenses can add up and none should be overlooked.