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Brother "excluded" means they specifically noted it in the policy as "Krystal's brother cannot drive the car?"
I suspect this was a troll, one and done......
Policy exclusions aren't all that uncommon. My nephew's live in girlfriend had a DUI, they each had their own cars and their own auto insurance but his insurance company required him to sign an exclusion stating they would not cover the girlfriend driving the car.
it's $19k, it isn't a lot, suck it up and pay it off in 2 years
Depends, she might be making $12 an hour or some other lowish wage. After All, the car was in her father's name leading me to believe she could not secure financing on her own.
Not everyone is 50 years old with a six figure job, average wage in this nation is low enough that 15k (what I guess she will owe after auction) could be a huge burden. Not sure how the finance company will deal with 15k of unsecured debt if she cant pay it all off at once (as im sure they will want).
Plus she needs another car, so there's that burden as well.
Id surmise she might walk away if it were in her name only. After the auction, she might still owe 15k. I do not know many people that will be very enthused about paying back 15k unsecured debt even if it meant their credit got wrecked.
Depends, she might be making $12 an hour or some other lowish wage. After All, the car was in her father's name leading me to believe she could not secure financing on her own.
Facts: OP had her father involved on her car as he was the one that made the loan possible. The OP got insurance for the car, and the brother being young required a higher insurance rate. The brother was excluded from the policy, to save a lot of money. The brother drove the car without insurance and totaled it. Insurance company did not pay out for the accident, as the brother was excluded from driving the car.
There is a reason that the car had his brother excluded on the policy. The car was on a loan signed by his father. They excluded her young brother as a potential driver, as the young brother being included as part of his fathers family, would as much as doubled the insurance premium. By excluding him the insurance rate was much lower than if he was not excluded. This happens all the time in this situation.
As there is now no security for the loan, the loan will in all probability be called due, and the OP will have to come up with $19,000 plus any interest accruing. If she cannot, the lender will go after the father that signed the loan documents. If the father cannot come up with the money, then the father is going to be in serious trouble as the lender goes after the money he now owes them.
Originally Posted by Krod178 I was thinking about transferring the loan into my name (i have two years of good payments) then just stop making payments and mess my credit up.
Thanks for your help.
Krystal
Expect them to call your loan any day now. Once the security (car) no longer exists, they usually call the loan due now. As your father is on the loan, it not only messes up your credit, but also your fathers credit if not paid.
Policy exclusions aren't all that uncommon. My nephew's live in girlfriend had a DUI, they each had their own cars and their own auto insurance but his insurance company required him to sign an exclusion stating they would not cover the girlfriend driving the car.
Exclusions are very common.
Example: You added your teenager to the policy when they received their new drivers license at 16. 2 months later they get a speeding ticket and a month after that they get in a car accident. Insurance companies don't like a new driver getting into accidents so they might send the insured a notice that either they sign an exclusion letter excluding the teenager from the policy our they will be canceled or non-renewed. That's just one scenario of course, but it happens very often and if an excluded driver drives the insureds car and causes an accident, etc. the policy will not pay out!!
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