What happens when I get into an accident without insurance on a financed vehicle? 27 Answers as of June 11, 2013My girlfriend has a car loan from a buy here lot. She recently got into an accident and was not current on her insurance. Besides the legal ramifications of maybe losing her license, what are her "worst case" scenarios with the finance company since the car is totaled.
Law Offices of Earl K. Straight | Earl K. Straight
I assume from your question that your girlfriend was at fault, so there is not another party's insurance company to make a claim against. If that's the case, the worst case scenario is that she will still be liable for the full amount of the car loan, and thus be making payments for a car she no longer owns. She should get credit for whatever amount the car was sold for salvage, but that is usually only a few hundred dollars.
Answer Applies to: Texas
Bulman Law Associates PLLC Injury Law Firm | Thomas Bulman
Whether the "collateral" for the loan (the car) is operable or not, she promised to pay the money back with interest. She should pay the note to avoid default and injury to her credit. Driving without insurance is stupid and irresponsible. Hopefully, she has learned a valuable lesson.
Answer Applies to: Montana
Law Office of Mark J. Leonardo | Mark Leonardo
If she was at fault for the accident, the lender can hold her responsible for the balance of the loan. If the other person was at fault, his or her insurer is liable for the property damage. Your girlfriend cannot recover certain damages since she was uninsured (if the other driver was at fault), but the car damage is still recoverable.
Answer Applies to: California
R. D. Kelly Law Firm, P.L.L.C. | Robert Kelly
She probably continues to have the legal obligation to pay what she owes. Sometimes bankruptcy is a relatively painless way to discharge a debt, though. A telephone call to a bankruptcy attorney might be well worthwhile.
Answer Applies to: Washington
Ewusiak & Roberts, P.A. | Christopher J. Roberts
Unfortunately, the loan is probably still owed by your girlfriend even though the car is now totaled, unless there was an agreement otherwise (which is doubtful, but you should read the loan documents carefully). If the accident was the other driver's fault, you can make a claim against his/her insurance company for the damage to your girlfriend's vehicle.
Answer Applies to: Florida