What happens when I get into an accident without insurance on a financed vehicle? 26 Answers as of February 20, 2012
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.Free Case Evaluation by a Local Lawyer!
Enter Zipcode or for Immediate Assistance call (888) 428-7281
Have a general legal question? Click hereAsk a Local Attorney. 100% Anonymous. Free Answers.
Or for Immediate Assistance call (888) 428-7281
Free Case Evaluation by a Local Lawyer: Click here
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
The Margolis Firm | Charles J. Candiano
I wish I had better news but if the accident was her fault, this will be a very expensive lesson. Eventually, there will be an administrative hearing to determine damages. An administrative law judge will consider invoices submitted by the other driver and passengers for property damage and personal injury as well as invoices from your own finance company. Your license will be suspended unless you enter into a repayment agreement and remain current. It is also possible for the other driver's insurance company to file suit against you which to further insure repayment of the money.
Answer Applies to: Illinois
Replied: 8/29/2011
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
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 | 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
Law Office of Michael E. Hendrickson | Michael E. Hendrickson
She could end up owing the finance company for the fair market value of the vehicle at the time it was "totaled'.
Answer Applies to: Virginia
Replied: 8/24/2011
Law Offices of Minh C. Wai, P.C. | Minh C. Wai
The finance company may sue her for the remainder of the outstanding balance on the loan.
Answer Applies to: Indiana
Replied: 8/24/2011
Wilson & Hajek, LLC | Eddie W. Wilson
She is liable for the amount due on the car.
Answer Applies to: Virginia
Replied: 8/24/2011
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
Replied: 8/24/2011
Allen Murphy Law | W. Riley Allen
She will be sued for the damage done and a judgment can be entered against her.
Answer Applies to: Florida
Replied: 8/24/2011
Paul Whitfield and Associates P.A. | Paul L. Whitfield
If the girlfriend signed a note for the loan she will owe the amount due on the loan . these type folks always sue.
Answer Applies to: North Carolina
Replied: 8/24/2011
Bernard Huff, Attorney/Mediator | Bernard Huff
Your girlfriend should consult with and retain an accident attorney for legal representation.
Answer Applies to: Indiana
Replied: 8/24/2011
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 | 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. | 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 | 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
She will owe the finance company whatever amount is still owed.
Answer Applies to: Florida
Replied: 8/23/2011
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 | 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 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. | 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 | 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
