new car, accident 5 days later @ same time bank reniges on loan, is insur still valid?

Question

purchased a new car, five days later the car is in an acident, the next day the bank reniges on the loan.....the insurance on the new car accepts full liabilty for all vehicles involved......when they find out the loan is no good are they still responsible to pay damages or does person whos name car was to be in become financially liable for everything?

Answer 1

1. The bank can't renig on the loan because of an accident. What caused the bank to renig.
2. If the contract with the dealership was never cashed by the bank, the liability falls on the dealership; it was they're car if the loan was not approved or cashed. They are covered by insurance with usually a $1000 deductible. They may come after you for that, but contact your DMV if they get aggressive. The dealership won't want problems with the state--trust me. I've been the business mgr at a dealership for 9 yrs.

Answer 2

1

Answer 3

What do you mean that the bank "reniged" on the loan? How did you have the car before the bank funded the loan? That sounds pretty fishy to me, once a loan is signed for and funded, they cant renig on the loan. Yes, I beieve your insurance would still cover the car- its just going to be a bit messed up when they try to pay- especially if they pay less than what the seller considered the car to be worth... this one sounds like it has a good chance of ending up in court to me.

Answer 4

No. When you purchase the car and end up in a accident, the bank will not give you loan for it, but it will be you, the driver, that is liable for the accident, not the other driver. You must refer to the bank's auto loan policy, and it has all the explaination in there.

Answer 5

Just a guess here since I am not a lawyer, however since you can insure a car that does not have a loan, I am pretty sure the insurance would still be valid.

Answer 6

if u had coverage when u took possession of the car u have coverage.