What should I do if I crashed my financed car only to discovermy insurance lapsed so my insurance will not pay for it?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What should I do if I crashed my financed car only to discovermy insurance lapsed so my insurance will not pay for it?
he car is probably totaled or will take at least $10,000 to fix and I already have a loan on the car for $15,000. Is it best to call my financers and tell them I was in an accident? What is the conciquence if they repo a crashed car? What do you think is the best option?
Asked on January 10, 2015 under Accident Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
You are liable for the full remaining value of the loan, and if the car is totaled and so is valueless, the lender cannot recoup anything from repossessing the car. That means that the lender will seek the full amount of the loan from you directly--and if necessary, may sue you; and if they sue you and win, they could garnish your wages, levy on your bank account, execute on property you own, or otherwise seek to collect from you. Your obligation to them is to pay the loan, whether or not the car is intact--they will know something is wrong when you stop paying.
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 AttorneyPages.com 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.