What happens when you total a car with a title loan and have only liability coverage?

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What happens when you total a car with a title loan and have only liability coverage?

To avoid car in front that lost control abruptly, my car spun out to hit median.

No other cars involved. Car is totaled with title loan and only liability

coverage. Just switched from comprehensive/collision to liability a few months

prior but liability at time of title loan approval.

Asked on June 16, 2019 under Accident Law, Alaska

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 1 year ago | Contributor

Unfortunately, your liability insurance does NOT protect you--it provides compensation for other people injured or other cars damaged by you. Since this was a one-car accident, there is no one else to sue or no other person's insurance to claim against. That you previously had comprehensive/collision is irrelevant; all that matters is that you presently only have liability coverage, since only the coverage in effect at the time of the accident matters.
You will have to pay the full balance of the title loan--you can keep making the monthly payments, or you can pay it off in a lump sum (if you can and want to), but in any event, you have to pay: your oblgation to repay the loan is unaffected by what happens to or the loss of your car.


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