Am I responsible for the balance of my car after it’s been totaled in an accident that wasn’t my fault?
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Am I responsible for the balance of my car after it’s been totaled in an accident that wasn’t my fault?
My son was driving my car and another driver ran a stop sign and hit him. The driver then left the scene, but was later caught; they found meth and needles in their car. My car was totaled and my insurance company is telling me that they will only pay a certain amount on my car, basically blue book, plus 25%, because I have GAP coverage. After that payment, I still owe nearly $2,200 on the car. My insurer is telling me that I have to pay that. Is this true? I don’t
understand why I have to pay anything. I found out the other driver was
covered under his dad’s policy and it’s through the same company as mine. I
guess the real question is, do I really have to pay? I can’t get another car until this one is paid off and I don’t have the cash to pay it off. So because some 20 year old was on drugs and ran a stop sign, I now don’t have a car? This just doesn’t seem right.
Asked on August 29, 2016 under Accident Law, Indiana
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
Yes, you really have to pay: you are contractually obligated (the financing agreement is a contract) to pay all amounts (e.g. the remaining balance) not paid by insurance. However, you may sue the at fault driver (and/or the owner of the car he/she was driving, if the at-fault driver was not the vehicle's owner; the owners of cars are responsible for the actions of those whom they allow to drive their cars) for any amounts not paid by insurance for you. Unfortunately, you have to sue for the money, and you do have to pay off the remaining balance--the lender, etc. may not sue directly on your behalf, because their connection is to you, not to the other driver (that is, the contract is with you, not the other driver). So you have to pay off the balance, but can then sue the other driver, who based on what you write was at fault in causing the accident, and/or that car's owner to recover your money.
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