My boyfriend & I just got back from overseas in June. His car got here in July, and BAM he pretty much totaled it. Its a brand new car, he's had it for less than a year. His insurance said they do not provide coverage in the United States, and canceled his policy. Like "end of story, youre screwed."
So what happens if he tells the bank (who he pays for his car loan $ to) that he CANNOT afford to fix it (like $12g Im talkin here!), and to repo it? Will the bank sue him for the cost of damge to the car? Or will they just repo it and he gets bad credit???
HUGE financial problem here (ugh)
2006-10-04 19:56:08 · 6 answers · asked by Sami Jo 2 in Cars & Transportation ➔ Insurance & Registration
If the terms of the policy let the insurance company off the hook, they would not pay, and would not have to pay. The bank still demands payment, in fact, because the car was not insured in USA the terms of the bank loan were probably violated. So the bank will sue for payment from your boyfriend, and he will have to pay or file bankrupt. If the car has any salvage value the bank will probably take it and still sue for the difference. You could try to negotiate a reduced settlement from the bank as they may settle for something if they think their alternative, even with a court judgement, is nothing.
2006-10-04 20:12:50 · answer #1 · answered by victorschool1 5 · 1⤊ 0⤋
If the policy that he had was one for his car overseas, then I'm sure the contract said that you're not covered if you have an accident outside of that country, or in the states, etc. So they're in the right there.
If he has a lienholder, they will only care about the damages and it being a total if he doesn't make the payment. In that case, when they repo it, they will want payment for the damages. And guess who has to pay that? If he'd bought a US policy prior to this accident this would not be an issue, but I'm sure you knew that.
2006-10-05 18:13:41 · answer #2 · answered by Chris 5 · 0⤊ 0⤋
Sorry, but you're stuck with the bill. Regardless of if you still have the car or not, you still owe the money. They won't repo a totalled car. So they won't sue for the damages, because they don't care. Don't pay and they'll take you to court. Sorry.
2006-10-05 04:14:09 · answer #3 · answered by diamond_joe1979 3 · 1⤊ 0⤋
The bottom line is that he has made a mistake. He should have made sure that the insurance company would cover the car in US or arrnaged cover when he started driving the car.
He continues to pay the loan and either scrap the car or sell it for parts or repair it.
2006-10-05 03:09:54 · answer #4 · answered by Nimbus 5 · 1⤊ 0⤋
depending on the insurance laws in the country in which you have the policy this could be legal, but I would contact a lawyer first.
You probably should have gotten a policy for the country that you were driving in like if you had a rental car or something like that.
Sorry that this is not much help.
2006-10-05 03:05:30 · answer #5 · answered by Hard Crowbar 4 · 0⤊ 1⤋
if u haven't switched the paper work and proved to them its registered then, yes it's legal also did u add this car on ur current insurance
2006-10-07 14:03:29 · answer #6 · answered by Mark 6 · 0⤊ 0⤋