Can I stay with my car although it has been declared total loss and I am still paying for the car to a financial company?
Free Insurance Quote Comparison
Secured with SHA-256 Encryption
UPDATED: May 31, 2012
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
Insurance Question from Lynwood, CA
Asked on 05/31/2012
Can I stay with my car although it has been declared total loss and I am still paying for the car to a financial company? I was in a car accident, I was not at fault, someone hit me and left the scene but I was able to get the plate number. After that my insurance got involed and declared my car as total loss, they want to pay me for what the car is worth with a slavage title since the accident happened, the problem is that i leased the car and im still paying for it,so if i accept what my insurance is telling me to then i would stay without a car and without money to pay for another one. I think thats not correct because it wasnt my fault, and i feel that who hit me should be paying for it. what can i do?
Answer given on June 03, 2012
If you were involved in a hit and run accident then your insurance company will handle the claim for the damages to your car. If they are able to find the other driver, through the license plate number, they will subrogate in an attempt to get reimbursement for the amount of money they paid out. If successful, they will reimburse you for your deductible.If the car was not worth the amount owed on the lease, and there is no gap coverage, then you may owe the leasing company for the balance due. You should contact the leasing company, as they may have a way to release you from the liability of the lease since the accident was not your fault and the car was totaled. There may be some clause that will relieve you of the amount that was not paid.Unfortunately, a totaled vehicle is often not worth what is owned on it either with a loan or lease. Even if the other insurance company gets involved, they will not be willing to pay more than the actual cash value of your leased car.
IMPORTANT NOTICE: These answers are for general information purposes only and are provided by the person answering and FreeAdvice.com AS IS. It has not necessarily been reviewed by the management staff of FreeAdvice.com nor is it binding any insurance agent, broker, or other insurance professional or any attorney or insurance company. Insurance laws, regulations and practices vary from state to state and insurance policies and practices differ from company to company, by type of policy, by state and locality and by type of insurance. Tiny variations in the facts, policy language or a detail not set forth in a question often can change the outcome or a professional's conclusion. Although FreeAdvice.com has confirmed that the answer(s) was/were provided for the account of an experienced insurance professional, that professional may not be licensed in the state referred to in the question, and may not be experienced or up to date in the subject area. Unlike the answers provided here, upon which you should NOT rely, for personal advice you can rely upon we suggest you consult a licensed insurance professional in your area or retain a licensed attorney listed on AttorneyPages.com to represent you.