Can I be sued for the amount owed on a loan after an insurance payoff for a totalled vehicle?

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Can I be sued for the amount owed on a loan after an insurance payoff for a totalled vehicle?

My son was responsible for a low speed MVC. My insurance company wants to total the vehicle he hit. The owner iis threatening to sue over the amount he will still owe on his loan after payoff. Am I responsible for the difference?

Asked on November 8, 2011 under Accident Law, Washington

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If your son caused an accident where the other person's vehicle was damaged, your son is solely responsible for the fair market value of the car that was damaged be it costs of repair or if totaled, its blue book value. 

If the owner of the other car owes more on the vehicle deemed a total loss than what its current fair market value is, neither you nor your son are responsible for the difference. If your auto carrier pays to settle the claim, make sure that you and your son get a full and complete release from the other party. Good luck.


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