What happens when I get into an accident without insurance on a financed vehicle? 27 Answers as of June 11, 2013

My 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.

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A. Daniel Woska & Associates, P.C.
A. Daniel Woska & Associates, P.C. | Dan Woska
Your question is what is the worst that could happen to your girlfriend based on an automobile accident in which she was involved. Normally car accidents lead to civil suits seeking damages.
Answer Applies to: Oklahoma
Replied: 9/1/2011
Cody and Gonillo, LLP
Cody and Gonillo, LLP | Christine Gonilla
she will be sued by the company for the amount of the loan not paid.
Answer Applies to: Connecticut
Replied: 8/25/2011
Law Office of Jared Altman
Law Office of Jared Altman | Jared Altman
She may have to pony up for the value of the car.
Answer Applies to: New York
Replied: 6/11/2013
David Hoines Law
David Hoines Law | David Hoines
She still owes the finance company.
Answer Applies to: Florida
Replied: 8/24/2011
Law Offices of Earl K. Straight
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
Replied: 8/24/2011
    Andrew T. Velonis, P.C.
    Andrew T. Velonis, P.C. | Andrew Velonis
    As far as the finance company is concerned she has to pay for the car, damaged or not, insured or not. If she doesn't they can re-posess, sell what's left of the car for scrap, and sue her for the difference.
    Answer Applies to: New York
    Replied: 8/24/2011
    Law Office of Mark J. Leonardo
    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
    Replied: 8/24/2011
    R. D. Kelly Law Firm, P.L.L.C.
    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
    Replied: 8/24/2011
    Klisz Law Office, PLLC
    Klisz Law Office, PLLC | Timothy J. Klisz
    She would owe for the vehicle and any damages or injuries caused to other vehicles involved in the accident. She will need an attorney to defend the case.
    Answer Applies to: Michigan
    Replied: 8/24/2011
    Lyle B. Masnikoff and Associates
    Lyle B. Masnikoff and Associates | Lyle B. Masnikoff
    She will owe the finance company whatever amount is still owed.
    Answer Applies to: Florida
    Replied: 8/23/2011
    Kirshner & Groff
    Kirshner & Groff | Richard M. Kirshner
    They can get a judgment against her on what she owes them.
    Answer Applies to: Florida
    Replied: 8/23/2011
    Cantor & Burger
    Cantor & Burger | Gary K. Burger
    The finance company can file suit and get a judgement against her. She has little defense. Sorry.
    Answer Applies to: Missouri
    Replied: 8/23/2011
    Richard E. Lewis, P.S.
    Richard E. Lewis, P.S. | Richard Eugene Lewis
    She is still responsible to pay for the car and any damages to a third party.
    Answer Applies to: Washington
    Replied: 8/23/2011
    Ewusiak & Roberts, P.A.
    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
    Replied: 2/20/2012
    Holzer Edwards
    Holzer Edwards | Kurt Holzer
    The worst case scenario is that they will get a court judgment and recover all the money for the car from her through wage garnishments and the like.
    Answer Applies to: Idaho
    Replied: 8/23/2011
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