Saturday, October 31, 2009

Totaled a friends car. Has a loan on it still but no collision insurrance. Am i responsible?

I totaled a friends car about a year ago. Needless to say we're no longer friends. the car was worth only 8k dollars but has an outstanding loan of nearly 10k. Unfortunately it had no collision insurrance. I had asked him a number of times whether the car was fully insured and he always insisted that it had everthing it needed. Dont cars with loans on them need collision? Illinois Here. Anyway what are my obligations, he's threatening small claims court because im not willing to pay for it. He hasnt told the loan company about the accident and the car was sold to a junkyard right after the accident.



Totaled a friends car. Has a loan on it still but no collision insurrance. Am i responsible?

Regardless of what your (former) friend's insurance situation was, YOU are morally, ethically and most likely legally responsible for compensating him for damage to his car while you were using it. How could that not be clear to you? It would have been convenient and less expensive all around if the car had been insured, but the fact that it wasn't is not HIS problem, it's yours. You don't get to skate because he didn't have insurance.



If there was another vehicle involve which may have been at fault as well, then maybe you can go after them.



Meanwhile, do the right thing.



Totaled a friends car. Has a loan on it still but no collision insurrance. Am i responsible?

Verify that the insurance hasn't paid it. If they have NOT then PAY UP.



Totaled a friends car. Has a loan on it still but no collision insurrance. Am i responsible?

I am not sure to what extent you are liable but I am sure there would be something that you would have to pay if you were to go to small claims court. However, since he has sold the car, did not have enough insurance, etc. you would not be responsible for the 10k or the 8k. If you were to have to pay. I would guess that it would be the 8k - sale value. Also, since it has been a year ago, he may not be able to prove much...Good luck



Totaled a friends car. Has a loan on it still but no collision insurrance. Am i responsible?

Usually the bank would make sure there is/was full coverage on the vehicle. If you know what bank, call them and ask. Maybe your friend is not being strait with you. It's very irresponsible to still be paying on a vehicle w/out having the full insurance. Was there a police report??? They would have the bank info if you don't. Your friend can sue you, but it still was his/her responsibility for the insurance. Good Luck



Totaled a friends car. Has a loan on it still but no collision insurrance. Am i responsible?

i would suggest contacting the insurance company. if the car was bought on a loan, then the bank makes it mandatory to have full coverage insurance. that includes collision as well. also the insurance would cover other drivers as well. your friend needs to come clean with the loan company and also tell his insurance company. maybe your friend wasn't paid up on his insurance. in any case, it's his problem. not only covering up the fact the car was totaled, but also threating taking you to small claims court. if he proceeds with this, he will only be in more trouble. once he does tell all, it would make sense that you are responsible for some of the damages. pay what his insurance company recommends and be done with it.



Totaled a friends car. Has a loan on it still but no collision insurrance. Am i responsible?

I don't know about legally, but morally you are obligated to pay whatever the insurance company doesn't. You borrowed the vehicle in good faith and are obligated to return the vehicle to him in similar condition to what you borrowed it. Since you were not able to return it to him that way (as you totaled it) you are obligated to make him %26quot;whole%26quot; again. Some would even say that not only are you obligated to pay what the insurance doesn't pay-you are also obligated to restore his means of lost transportation also.



Totaled a friends car. Has a loan on it still but no collision insurrance. Am i responsible?

You did it.Suck it up and start paying.He should of reported it to his loan co..It is legally their car.He is at fault for not having insurance and can be held liable for damages.Call an attorney.



Totaled a friends car. Has a loan on it still but no collision insurrance. Am i responsible?

Get the VIN( vehicle Identification number) on the vehicle but you said It was sold to the salvage yard so try to call the insurance company and notify about the accident because in my state if the person listed on the insurance was not driving the vehicle at the time of the accident then the insurance won楹搕 pay the affected victim. It might be that your friend reported the vehicle in a different way to the insurance company( like stolen per say), and he thinks that even though you need to be responsible for your screw up, you still need to know the truth that he did not cheat the insurance company either. If you need to pay it should be the right amount stated by whoever is being fair, good luck!



Totaled a friends car. Has a loan on it still but no collision insurrance. Am i responsible?

Errr...why aren't you willing to pay for it, dude? You better go ahead and get that second job because the judge will most likely MAKE you pay the cost of the vehicle, court costs and any other fees associated with this mess. Your 'friend' probably had a single interest insurance policy on his car -- meaning that the bank would recieve the value of the policy if the vehicle was destroyed. The remaining loan balance is still due, which is probably what you will be in court for.



Totaled a friends car. Has a loan on it still but no collision insurrance. Am i responsible?

Since he claimed to be fully insured, you should offer to pay him $500 towards his deductible. If he chose to cancel the collision coverage, that's his loss. You may want to consult with an attorney and see what he or she recommends.



Totaled a friends car. Has a loan on it still but no collision insurrance. Am i responsible?

Just because the finance company mandates comp/collision insurance DOESN'T mean the insurance company is obligated to AUTOMATICALLY provide this coverage. The insured person has to request this coverage and then pay the premium. So if your friend didn't purchase the appropriate coverage--that's his fault.



However, this doesn't change the fact you totaled out the car. I'm assuming you were at fault for the accident....however, DO YOU HAVE CAR INSURANCE???? If you do, it's only right of you to turn the claim in if you have collision insurance and have your insurance company cover the damage for a non-owned auto.



Either way, you wrecked the car, you totaled it out. You should pay for what you did, whether this guy has insurance or not. So do the right thing, and either pay him or turn it into your insurance for secondary coverage.



BTW.....SOME lenders, not all, will automatically force insurance onto the loan. It doesn't sound like they did in this case, and your friend would know it if they did. As for the sale of the car---he should take the money he received from the sale and send it to his lender. It's there money.

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