by beezysmith » Fri Jul 10, 2009 07:08 am
So I wrecked my car that I'm still making payments on. But I had no insurance at the time of the work. I got an estimate to get it fixed and its about $8000+. I don't have good credit to take out a loan or make enough money to pay to get it fixed. I need help!
Posted: Fri Oct 12, 2012 07:55 pm Post Subject: Finance Companies
Hi. If a car is previously owned and purchased on a finance plan, isn't it a CA requirement to have full coverage insurance to protect the finance company? If a car is involved in an accident and wasn't insured (9 days after purchased) and the finance company finds out it wasn't insured, won't they automatically assign insurance to the loan payment? And if so, approximately how much? We are talking about a 20 year old male, not married, with an accident in a financed car with no coverage. I assume it won't be cheap....
Posted: Sat Oct 13, 2012 12:03 pm Post Subject:
If a car is involved in an accident and wasn't insured (9 days after purchased) and the finance company finds out it wasn't insured, won't they automatically assign insurance to the loan payment?
At this point, it would be too late to insure the vehicle (at least as far as the accident under discussion is concerned). And as to your previous question about what coverage is required, lenders are under no requirement to insure a vehicle. CA law only requires that the driver of the vehicle be insured for minimum financial liabilities: $15,000/$30,000 bodily injury (per person/per accident) and $5,000 property damage. Whether that coverage is from a policy covering the vehicle or another policy is relatively unimportant.
It takes the CA DMV months to figure out that a vehicle is being operated without minimum coverage and impose a driver license suspension on the registered owner. Over the years, there have been various proposals to automatically insure vehicles through motor vehicle fuel taxes, a true form of "pay as you go" program, but none has ever become a viable solution, and given the CA legislature's ability to mismanage such moneys through fiscal irresponsibility, I wouldn't want that sort of program applied to me.
Most lenders require the borrower to also insure the vehicle for collision to protect some or all of the unpaid loan balance on the vehicle, but this is not a legal requirement. When a lender puts insurance on a vehicle because the borrower fails to do so, that coverage may or may not include the personal liability coverages. The lender has no responsibility for that whatsoever.
We are talking about a 20 year old male, not married, with an accident in a financed car with no coverage.
Another example of irresponsible young persons, auto sales persons (the finance dept fellow), and lenders. Although there is no law that requires this, lenders and auto dealers, morally, should not allow a person to drive off the lot unless there is proof of insurance in force. If a person is replacing an insured vehicle with another one (new or used), there is continuing coverage for a limited time period (a few days to a couple of weeks, depending on whether there is collision coverage on the existing policy or not). Beyond that point, well, the responsibility falls on the borrower to be insured while operating the vehicle, and the lender has a responsibility to follow up concerning the replacement coverage.
In this case, everyone involved is probably out of luck, especially the person who was damaged by the uninsured driver. Hopefully, they carry uninsured motorist coverage, which will cover some or all of their loss.
Posted: Sat Nov 10, 2012 04:49 pm Post Subject: You've NEVER seen auto coverage this cheap! Only $39.90!
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Posted: Sun Nov 11, 2012 01:21 am Post Subject:
Total misrepresentation
Posted: Thu Dec 13, 2012 09:32 pm Post Subject: no payments made
I have made no payments on a car but I wrecked it, hit black ice and a guard rail - about $3000 damage. I just want to have the car towed to the loan co. and walk away from the loan and the car what could happen.
Posted: Fri Dec 14, 2012 03:06 am Post Subject:
You bought it, you told them you would pay for it. It doesn't matter whether you wrecked it or not. The finance company is owed the full balance on the loan.
Sure, go ahead and give the car back to the loan company. What a nice guy. I assume you do that with the clothes you wear to a job interview, too?
They'll fix it up or salvage it, and then you will be sued for the balance owed on the loan plus the cost of repairs, minus whatever they sell it for. What did you think would happen?
Now here's the really good part. To whom do you think they will sell it, and for how much? It will go to one of the people at the finance company or one of their kids. For $1 . . . the highest bid in a "sealed" auction.
So, until you become a responsible adult member of society, take the bus from now on.
Posted: Tue Dec 25, 2012 11:22 pm Post Subject: banks and insurance tell you were to take youe car for repai
I have loan through a bank. My insurance company won't give me the money I lees I take it to a perferd shop that the bank says. Is that legal in New York?
Posted: Wed Dec 26, 2012 12:04 am Post Subject:
I doubt that this is true, otherwise the signs that must be posted in NY auto repair shops according to Article 12A of the Vehicle & Traffic Law, Section 398D 4. (a) would state something other than
PURSUANT TO SECTION 2610 OF THE INSURANCE LAW AN INSURANCE COMPANY MAY NOT REQUIRE THAT REPAIRS BE MADE TO A MOTOR VEHICLE IN A PARTICULAR PLACE OR REPAIR SHOP. YOU HAVE A RIGHT TO HAVE YOUR AUTOMOBILE REPAIRED IN THE SHOP OF YOUR CHOICE.
If the insurance company cannot require this, I don't believe the lender has any greater authority to do so either. From a NY Dept of Financial Services webpage ( http://www.dfs.ny.gov/consumer/fileacomplaint.htm ) :
If you are unable to find the answer to your general question one our website, the Department is ready to handle inquiries via the following options:
Insurance related questions:
Telephone: You may call Monday through Friday, 8:30AM to 4:30PM at 1-800-342-3736, 212-480-6400, or 518-474-6600.
E-mail an Insurance Question [here: http://www.dfs.ny.gov/insurance/nyins_csb.htm ]
Banking related questions: please call 1-877-BANK-NYS (1-877-226-5697).
You should be able to get the definitive information at one of those four telephone numbers or via email.
The only thing I believe the lender may lawfully do is withhold endorsing a two-party check (to you and them or to them and the repair shop) until completion of the repairs (in order to be sure that their security interest has been preserved).
Posted: Sun Jan 20, 2013 03:29 pm Post Subject: crashed
I can relate to a lot of you somewhat... my insurance ran out and I didn't pay it because of work and what not (week late). Took a road trip and my sister crashed my car. She had full coverage at the time of the accident and still does. It will cost me about $8,000 to fix my car and my sister refuses to help pay anything. I'm still paying on the car that I can't even drive. What can I do?
Posted: Sun Jan 20, 2013 03:55 pm Post Subject:
my insurance ran out and I didn't pay it because of work and what not (week late)
Auto insurance companies long ago created automatic payment plans so this doesn't happen. You should consider using it in the future.
my sister crashed my car. She had full coverage at the time of the accident and still does.
If this is true, then you file a claim against her with her insurance company. If she refuses to cooperate, then you sue your sister in small claims court for the damage.Either of these actions on your part, both of which are proper, will probably cause your sister to stop talking to you, too, which minimizes the chance of this happening again anytime soon.
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