Can I be sued for the amount owed on a loan after an insurance payoff for a totalled vehicle?

UPDATED: Nov 8, 2011

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can I be sued for the amount owed on a loan after an insurance payoff for a totalled vehicle?

My son was responsible for a low speed MVC. My insurance company wants to total the vehicle he hit. The owner iis threatening to sue over the amount he will still owe on his loan after payoff. Am I responsible for the difference?

Asked on November 8, 2011 under Accident Law, Washington


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If your son caused an accident where the other person's vehicle was damaged, your son is solely responsible for the fair market value of the car that was damaged be it costs of repair or if totaled, its blue book value. 

If the owner of the other car owes more on the vehicle deemed a total loss than what its current fair market value is, neither you nor your son are responsible for the difference. If your auto carrier pays to settle the claim, make sure that you and your son get a full and complete release from the other party. Good luck.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption