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What happens if the car was totaled in an accident and money was still owed?

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2010-03-19 15:10:48
2010-03-19 15:10:48

That's about it. The car is totaled. The money is still owed. If there was a loan, you'd better have insurance and if you are lucky, the insurance will cover MOST of what you still owe.

Answer

Your insurance co. is obligated by law to satisfy any payment up to the policy's limits. If there are money owed after that, you can sue the other driver for the money owed or be sued, whatever applies.

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If a car is totaled in an accident and only liability insurance is present, there is a chance that the other party's insurance will pay for the vehicle if the accident was their fault. If a car is totaled, but no others were involved, then the responsibility falls on the registered owner. This will not release the registered owner from paying for the vehicle, either, if money is still owed on the car.

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Typically, your deal with the bank that you bought your car through is separate from your car insurance. However, many insurance companies offer "gap" insurance to cover this issue, so that the car is paid off if it is totaled. Talk to your agent, and they can tell you exactly what coverage you have and how much they'll pay. The insurance company (yours) will look the car and if it is totaled they will give you the money for its current value, minus your deductible. If its repairable, they will give you the money to repair it, minus your deductible. Any money left on the car payments after the amount your insurance pays is your responsibility, unless your insurance specifically covers this. If you didn't have insurance, then you lose it all, no money to fix or replace the car, and you still have to pay for the car. Never drive a car without insurance, period.

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If you were insured at the time of the accident, your insurance should pay up to the amount stated on your policy. It does not matter if you still have the insurance now. It is important that you had it on the daye of the accident.

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they still will not give you money for the car accident and because of the accident they will most likely charge you a higher fee for being considered an unsafe driver.Added: There is no such thing as retroactive insurance. A policy you get today will not cover you for a collision you had last week.

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its valued by however much money you can make off the scrap parts that are still okay with the vehicle.

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Not unless you have the new option in insurance of the new car replacement. If your car is totaled, you will be paid the Blue Book price for your vehicle. This sum is the amount your vehicle is worth at this time. Any amount over this sum that is still owed to a car loan is still due.

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Not while still "totaled". Since everything is tracked by the VIN# you won't be able to insure a totaled vehicle until such time that it's made roadworthy and has a reconstructed title.

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Nothing happens. You still get the money in your account. They just want the house, not your money.

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If you want to keep a totaled car, the insurance company will determine the salvage value and deduct that from your settlement check. You can still get liability insurance (if there are no safety issues related to the damage), but not collision or comprehensive unless you have the repairs made.

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Your insurance is either valid on the day of your accident or it isn't. If you are asking what happens if the policy was valid on the day of the accident but lapses before the claim is settled then the coverage that was in effect the day of the accident still applies. If your policy was not in effect the day of the accident then coverage will not apply.

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If you had collision insurance on the car at the time of the accident that should cover the value of the vehicle. Even if you were drunk you were still at fault and probably didn't crash your car on purpose.

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everything can happen with everybody. you can be as smart or as responsible as you want but still you're still human being!

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I was sued by my lease company eventhough my vehicle was totaled for not paying. I'm no expert but if I were you then I would because they have no hearts.

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It depends on why it was totaled. If it's cosmetic damage that totaled the car (like a shallow sideswipe) of course. If it's structural, like frame damage, maybe. If it was in a flood, it's probably not a good idea to fix it since quirky electrical problems will haunt the car forever. If it is repaired it would still carry a totaled title but it can be qualified with the brand 'totaled/reconstructed' on the new title.

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So long as you don't still owe money on the first car, I expect they would. I believe if you paid off the wrecked car, they may sell you another. They may require you get insurance before it leaves the lot.

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your still in trouble since you dont have a License,if you have a mean judge,

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Depends on whether you are still legitimately affected by the accident.

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CAREFUL! You may still be liable for a charge of "leaving the scene." To have had an "accident" generally implies that you struck SOMETHING. What is it that you struck, who owns it, and did you notify them?


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