So, I have a huge question. I financed a car, but ended up in an accident and totaled the vehicle. The accident was not my fault, yet I have $10000 to pay on the car and only have liability insurance. This being my first car,what will happen?

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Apr 27, 2017

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Insurance Question from Phoenix, AZ

Asked on 04/27/2017

So, I have a huge question. I financed a car, but ended up in an accident and totaled the vehicle. The accident was not my fault, yet I have $10000 to pay on the car and only have liability insurance. This being my first car,what will happen? So, I have a huge question. I financed a car, but ended up in an accident and totaled the vehicle. The accident was not my fault, yet I have $10000 to pay on the car and only have liability insurance. This being my first car, and me being in college I am limited on money, yet need a car for work, as well as getting to class. I asked the dealer where I could place the car, as it is totaled and sitting in the impound which I am paying for daily, however they told me I just need to take it home, where I live in an apartment complex which most likely won't allow the vehicle there due to the hazards of the vehicle. If anyone has any comments that may help please do let me know, I have not heard from my insurance adjuster yet, as well as my dealership is giving me the run around and telling me different things. I feel I need a lawyer, yet several lawyers I talked with said I didn't have a case.

Answer given on May 26, 2017

If you have a car that is financed, you should not have only carried liability insurance on the car.  The contract requires you to have comprehensive and collision coverage on the car while it is financed. Your insurance agent or company should have explained that to you, presuming you told them the car was financed. Also, the finance company should have required evidence of insurance on the car.

If the accident was not your fault, the insurance company for the other driver should pay for the damage to the car.  If it was a total loss, they will only pay the actual cash value of the car and that may not be enough to pay off the loan on the car.  You need to follow up with the adjuster from the other insurance company regarding storage of the car, as your insurance company will not pay for any damage to your car since it was not insured for physical damage.


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