Car accident and car loan payment?
I was in a car accident last night. I'm not the responsible party, but they did total my car. We got a car loan when we bought the car and are paying it off. Now that I don't have a car anymore, I still have to finish paying it off, right?
Anyone know if I stop paying car insurance now?
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Hope you and yours are ok,
First, you MUST contact insurance company. This will put all in writing and stop insurance. They need to get an estimate of damage, since the title is in the banks name.
Then after that happens, the amount of the damage is taken and given to you. However, it goes to the bank to pay off some of the loan. If there is still more left on load, you are responsible, but you can usually flip the loan and get a new car with it.
So, you get money to pay off car loan and get another loan usually with same bank.
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Correct. Your deal with the lender, has nothing to do with the accident - you still have to finish paying off the car.
you can cancel the car insurance, if you're planning on turning in the tags and not getting another car.
The insurance company will be paying the "actual cash value" of the car, to the lender, so that will help lower the payoff amount.
With luck, the car is worth more than the payoff, so that your loan will get paid off, AND you'll have a little money to put down on the next car - or better yet, pay cash for the next car.
Your still responsible for the loan yet if you have collision coverage, your insurance should be able to work with you on settlement. Their responsible for 'actual cash value'. If you loan is lower than the value, you'll get some cash, if not...they will pay off what they can of the loan, leaving you with the balance.
If you have no collision coverage, you are at the mercy of the other drivers carrier. You need to submit a claim with them.
As far as canceling your policy, I would discuss this with the adjuster that's handling your claim. They should be able to backdate the information after your settlement is completed.
You wrecked the car without insurance, not her. You were driving too fast for the road conditions and should owe your sister a new car. She's going to have to make 31 more payments on a car she will never drive again.
Yes, you do need to pay the car loan off and yes, you can stop the insurance payments. Hope you were not injured or anyone else.
Legally...yes as the CAR LOAN is under your name.
Such a pitty, you will need to pay for something that is being useless to you.
Good Luck though...!
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