Am I still responsible for the deductible if a dealer purchased my vehicle with known damage?

UPDATED: Mar 20, 2012

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Am I still responsible for the deductible if a dealer purchased my vehicle with known damage?

My vehicle was in a collision and the other driver was at fault and provided false info at the scene. I filed a claim under my insurance policy and made an appointment at the dealership for repairs giving them the check for the insurance company. While awaiting the appointment date, I was searching for a trade at the same dealership. The dealership knew of the damage and repair appointment and accepted the trade. The old loan is paid in full by the dealership. I have a letter of transfer stating the vehicle now belongs to the dealership.

Asked on March 20, 2012 under Business Law, Louisiana


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If you sold your damaged car to an auto dealership without having paid the deductible required by your own insurer to have the car repaired, unless there is an agreement between you and the car dealership that bought your vehicle to the contrary, you are not responsible for the deductible. The reason is that your insurance company did not pay to have the car repaired.

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