Am I liable to pay for a new car if the other driver's insurance is demanding it? 35 Answers as of March 26, 2012

The other party's insurance company does have the right to seek re-imbursement for damages they paid for. They can only seek money for the actual damage so paying for a new car for minor scratches does not sound appropriate. If the car was considered totaled then the party was entitled to blue book cost or replacement cost.

Based upon the information that you submit it, I doubt that the insurance company that is coming after you can never collect on its money. Since you were uninsured, you will have to pay an attorney out-of-pocket, and you should probably take any reasonable offer you get regarding the property damage to the other vehicle.

Pay for the repairs and go buy some insurance. Not having insurance is illegal and results in you having to pay out of your own pocket a lot more money than you would for insurance premiums. It also means that people you injure and maim while driving may not be made whole for what you did to them. You may be able to dispute the amount of the payment but, if you caused the crash you will pay for the property damage. I hope only the cars were hurt and not some person.

Tell them to go jump. Make them sue you. Don't default. Answer everything they serve or send you by writing a letter to the judge tell him why you don't agree with their demand. Be your own lawyer. Get insurance for your car or don't drive. Learn your lesson.

You are not liable for the costs of a new vehicle. You are liable for the costs of repair of the vehicle, if it can be repaired and the repairs do not exceed the value (or a relatively high percentage of the value) of the vehicle. If the repairs to the vehicle exceed its value, you are liable for the "reasonable" value of the vehicle in the condition (such as how old it was, mileage, prior damage, optional equipment) it was in just prior to the accident. There is no exact formula to determine what the "reasonable value" is but you can look online or at used car dealerships to determine what the costs are for vehicles in a similar condition. As to what you should do, you can resist paying what they are asking. You likely would be sued and then, depending on whether it is in Small Claims Court, where you can defend yourself, or county/ district court where you can either defend yourself or hire an attorney to defend you. Ultimately, if you are sued and cannot reach an agreement, then a judge or jury will determine what you owe.

You are only liable for either 1) the cost to repair the other car, or 2) the value of the car at the time of the accident (if the cost to repair is at or new the value of the car or it is no longer driveable), but not the cost for a new car.

If you were not at fault make a claim against the other driver. Otherwise you may need to get an expert to evaluate the damage to the other car

They would be entitled to the difference in the fair market value of the car. No more. No less get you a lawyer to respond to their silly demand

You are only responsible for the costs of repair, unless the other vehicle was a total loss. It is not a total loss unless the cost of repair exceeds the fair market value of the car.

Tell them to "drop dead!". Don't pay.