What to do if you have just bought a car from a dealer and the first payment is still not due but the car was totaled in an accident?

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What to do if you have just bought a car from a dealer and the first payment is still not due but the car was totaled in an accident?

There were no injuries. The insurance says it is only going to pay fair market value but that will leave me owing $4000. Is there anything that I can do?

Asked on May 9, 2013 under Business Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If someone else was at fault for the accident (for example, someone ran into you while you were driving carefully), then you could sue that person for any out-of-pocket loss you suffer not paid by your insurer.

Otherwise, however, you may not have any recourse: this is why people buy "gap" insurance: to cover a shortfall like the one your describe.


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