U.S. CitiesCity-Data Forum Index
Celebrating Memorial Day!
Go Back   City-Data Forum > General Forums > Automotive
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 04-25-2011, 10:34 PM
 
Location: DFW
6,718 posts, read 11,184,922 times
Reputation: 4986

Advertisements

Say you haven't paid off your car yet and you have it parked on the street.

You only got the bare minimum insurance your state requires and you don't have any other insurance (i.e. homeowners.)

One day, some driver rams into your car, totals it, then drives off.

There are no cameras on the street and the police have no idea/proof of who did this.

What are you options now?
Reply With Quote Quick reply to this message

 
Old 04-25-2011, 10:48 PM
 
Location: Dallas, TX
4,464 posts, read 9,643,842 times
Reputation: 2819
Quote:
Originally Posted by ragnarkar View Post
Say you haven't paid off your car yet and you have it parked on the street.

You only got the bare minimum insurance your state requires and you don't have any other insurance (i.e. homeowners.)

One day, some driver rams into your car, totals it, then drives off.

There are no cameras on the street and the police have no idea/proof of who did this.

What are you options now?
Doesn't pretty much every financing institution require you to have fully comp. if you have payments? I assume specifically to avoid such a situation, as many would stop paying on it, and the financier won't have a car to repossess.

So to my knowledge, the situation is impossible.
Reply With Quote Quick reply to this message
 
Old 04-25-2011, 11:02 PM
 
8,402 posts, read 19,557,932 times
Reputation: 6765
Quote:
Originally Posted by TheViking85 View Post
Doesn't pretty much every financing institution require you to have fully comp. if you have payments? I assume specifically to avoid such a situation, as many would stop paying on it, and the financier won't have a car to repossess.

So to my knowledge, the situation is impossible.
Exactly, except if the car has more owed on it than the insurance company is willing to pay. Then the car's owner would have to come up with the difference.
Reply With Quote Quick reply to this message
 
Old 04-25-2011, 11:11 PM
 
Location: a swanky suburb in my fancy pants
3,391 posts, read 7,325,041 times
Reputation: 1573
Quote:
Originally Posted by TheViking85 View Post
Doesn't pretty much every financing institution require you to have fully comp. if you have payments? I assume specifically to avoid such a situation, as many would stop paying on it, and the financier won't have a car to repossess.

So to my knowledge, the situation is impossible.
^What he said...... unless you just dropped the coverage very recently and haven't been caught yet by your lender.
Reply With Quote Quick reply to this message
 
Old 04-26-2011, 12:03 AM
 
Location: Guangzhou, China
9,620 posts, read 12,801,195 times
Reputation: 11167
You'd basically be screwed.

FTR: state minimums are NOT set to the same minimums as the financial institutions! A state minimum sets the limits for what your insurance will pay to someone else if you hit them. If you call an insurance company to get insurance, they ask, "is this car financed?" You say "yes," and they quote you full coverage. You say you don't have enough, they'll sell you a liability policy so that you can legally drive, but they make you send in a piece of paper stating that you understand that you're waiving coverage on your car, so in the event it's stolen, someone hits it and drives off, etc.

Lenders generally will pull out a policy on your car "for you" if you don't have insurance; it's pretty much always 2x what the highest insurance you could find was. So, say for instance, you didn't want to pay $300/mo for insurance... well... they're going to tack on their insurance for you, and it's probably going to run something like $450-600/month.

That said, they generally send you a whole load of paperwork warning you that they're going to do it, and your monthly payments will have jumped accordingly. The insurance doesn't go on there automatically; they usually wait a few months before they do this.

Consequently... if you only had liability, your car was parked on the street, got totalled, and the person who hit it booked, and the financier hadn't insured the vehicle... you would be responsible for the value of the loan.

Say it was a new-ish Corolla that you can get about $4k for in its current, totalled state. Your loan was $18k, and you'd paid $2k on it. 18 - 2 = 16k; 16 - 4 = $12,000 you're now responsible for. The bank is going to send you a bill for $12k. You're going to say that you don't have $12k, and they're most likely either going to take you to court and get a judgement against you (they'll win - you broke your contract) and you'll get wage garnishment; or, they're going to say that you can keep making payments to them, but they'll come after you and take you to court if you stop paying (they no longer have a car to repo).

In the meantime, it's going to be awhile before you'll be able to finance anything again.

Insurance sucks, but it sucks a lot less than the consequences of not having it on a car you owe money on!
Reply With Quote Quick reply to this message
 
Old 04-26-2011, 06:56 AM
PDD
 
Location: The Sand Hills of NC
8,776 posts, read 14,159,394 times
Reputation: 11850
Quote:
Originally Posted by ragnarkar View Post
Say you haven't paid off your car yet and you have it parked on the street.

You only got the bare minimum insurance your state requires and you don't have any other insurance (i.e. homeowners.)

One day, some driver rams into your car, totals it, then drives off.

There are no cameras on the street and the police have no idea/proof of who did this.

What are you options now?
You still owe the bank or finance co that lent you the money.

The same hold true for people who lose their homes in hurricanes or tornadoes.

Your screwed but it is your own fault for not having insurance.

If you can't afford insurance then you should not own a car.
Reply With Quote Quick reply to this message
 
Old 04-26-2011, 10:07 AM
 
Location: Birmingham
11,790 posts, read 12,654,101 times
Reputation: 10007
You're screwed.

If you have comprehensive coverage but you owe a lot more the it is worth you owe the difference unless you have GAP insurance.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Automotive
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top