My husband had a wreck in our kia sportage 3 days ago and we have liability. Our credit company found out that we only had that on the car and they require full coverage on the car. She called our insurance company to check and see if that is what we had and sent us a letter a couple of days after that. Stateing that if we didn't show proof of full coverage in 10 days that it will be added to it thru them. He called and reported the wreck and the lady said that they didn't add the insurance on there because the owner of the comany said to not worry about it. I was wondering is the a case for law suit or what do you think we should do.
2006-12-23 03:58:37 · 10 answers · asked by michelecmof4 2 in Business & Finance ➔ Insurance
I would read your loan agreement. If it is in there that you have fullcoverage then you need to have it. Belive me it will be far cheaper if you get it on your own than have the loan company get it for you.
2006-12-23 04:06:19 · answer #1 · answered by mongo_wood 3 · 0⤊ 0⤋
They gave you really bad advice. What the owner meant is the following.
"I personally don't care if you have Comprehensive Insurance or not, I get my commission either way. Once the car is sold it's the lenders problem, not mine. However if you crash the car either you or your insurance company will pay the lender for the car. If you do not have the right kind of coverage, the lender will expect you to write a check for the full amount of the balance. If you cannot do that the lender will sue you and garnish your wages. Thank you for buying a KIA!"
Somehow the owner of the company translated the above message in to "Don't worry about it.". What a scumbag, never do business with this jerk again.
Now what to do about this mess. I'm assuming you don't have the money to write a check to cover this. You're going to have to arrange a settlement for the remaining balance on the car and either sign an unsecured loan with the current lender or a new lender.
2006-12-23 04:24:32 · answer #2 · answered by KC 4 · 1⤊ 0⤋
The law normally just requires liability insurance, so the "other guy" is covered if you're at fault in an accident.
Pretty much all the time, if you have a loan on the car, the loan contract requires you to carry collision and comprehensive insurance, so they are assured of getting their money if something happens to the car. Read your contract. If it says you have to have it and you don't, the contract might say that they can provide the full coverage and just bill you for it - read the contract and find out. Even if it doesn't say that, if you aren't doing what you signed that you'd do, you're in default of your loan agreement and they could demand immediate payment of the entire loan balance.
Good luck.
2006-12-23 05:01:36 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
Did you ever hear of between a rock & a hard place.
Well thats where you are.
If there was another car at fault in the accident & is covered by insurance that will help. If not you pay to get the car fixed.
You either have to pay off the car loan or get it insured.
If the loan company gets the coverage (which it will add to your loan) or you have to get it which may be cheaper.
And it could be a whole lot cheaper.
Don't waste any time. Get it done now.
2006-12-23 05:18:25 · answer #4 · answered by Floyd B 5 · 1⤊ 0⤋
The owner of WHAT company said not to worry about it? It's not clear.
If you requested physical damage coverage from your insurance agent, and they didn't add it, you have a claim.
You'll have to prove that you requested they add it - or they'll have to admit it. But if they have records showing you asked they DELETE it, or your husband did, you'll lose the case, and have to pay their lawyer fees.
It's pretty unusual for an insurance company to NOT add coverage when you ask for it - it makes them money.
2006-12-24 15:37:23 · answer #5 · answered by Anonymous 7 · 0⤊ 0⤋
generally your lender has no duty to provide you coverage. unless state law says otherwise a lender can buy coverage which only covers the lender. This means if you default the insurance company pays the lender and then the insurance company takes over the debt and can sue you. consult an attorney about your rights
2006-12-23 04:04:57 · answer #6 · answered by Anonymous · 0⤊ 0⤋
this is all screwed up, you are required to carry full coverage on any financed vehicle, your insurance agent should have asked you, I can't believe the finance company never asked for verification of insurance in all those 3 years. you will have to pay for this wreck out of your own pocket better add full coverage so you will have it for the future
2006-12-23 19:18:53 · answer #7 · answered by Loollea 6 · 0⤊ 0⤋
It is the law in most states that you carry FULL coverage on ANY car that is financed. Once the loan is paid, you can drop back to only liability if you want to.
2006-12-23 14:04:52 · answer #8 · answered by Deb 5 · 0⤊ 0⤋
as per federal laws in US all the automotive should be insured and the responsibilty for same lies with the title owner of the goods and hence you should have insurred it.
if it is not done yet please insure same, law suit filing shall not be good soln as you will be wasting your prestigous resource.
2006-12-23 04:04:50 · answer #9 · answered by ashishmulye 3 · 0⤊ 0⤋
Ditto everything above....don't waste your time with a lawsuit....and if the car isn't a total loss...get collision and comprehensive on your own ASAP!!
2006-12-23 12:10:33 · answer #10 · answered by SantaBud 6 · 0⤊ 0⤋