I got into a car accident and was ruled at fault. I had GAP but no regular insurance. What can I do?

Question

I got into a car accident in May 06, and had GAP but no regular car insurance. I bought the car, but it was on loan. I initially won in small claims court, but was just overturned on appeals. I am pretty sure I can sue her in Civil Court, but I want to know what else I can do. Does GAP help me at all? Should I notify the loan company that my car is destroyed? If I do, will it destroy my credit?

Any and all help appreciated.

Thanks,
Mark

Answer 1

How were you able to finance a car without liability insurance? Finance companies require you to maintain insurance on your car for the life of the loan.(and most states/provinces require it )
The GAP you mentioned has to do with your car loan, it has nothing to do with financial responsibility.

Answer 2

Your GAP coverage is void if you don't have full coverage auto insurance. It's plainly stated in the contract you signed. Read it and then weep.

Many states now bar you from recovering any damages at all if you do not have the state required minimum liability insurance regardless of fault. The concept is called "no play, no pay". It's very possible that's why the case was overturned on appeal. If that's the case in your state, filing suit will be a waste of time.

Since you didn't have insurance, you'll need to hire an attorney at your own expense. If you'd had insurance, the insurance company would have handled that.

Yes, you need to notify the finance company that the vehicle was destroyed. And you still need to pay off that debt. As the security interest has been destroyed they will likely demand immediate payment in full. If you can't pay it off immediately it will trash your credit unless they are willing to accept payments. If they are, they will probaby require you to refinance the contract as a personal loan at a much higher interest rate and probably a shorter term to boot.

I'll spare you the wisecracks on driving without insurance. You now kwow that it is incredibly stupid to do so and calling you an idiot won't change anything.

Answer 3

Sorry, but you have serious issues going on here.
If a vehicle is a total loss, the insurance company would only pay the actual cash value of the vehicle. If you are financing the car, GAP insurance will pay the difference between the actual cash value and what you have left on the finance. However, by not carrying regular insurance, you actually nulled your GAP insurance as well, so it will no longer help you either.
You need to notify the loan company the car was totalled. You owe whatever is left on the car.
If you are at fault for the accident, you will personally be responsible for any damages done to the other person's vehicle as well.
You can sue in Civil Court if you so choose, but she will probably counter-sue you (especially because you don't have insurance) and then see what happens. It will get costly for you (not for her since her insurance will pay for it), but that may be your only option.
It won't affect your credit as long as you pay off what you owe to your loan and her car (if you are responsible). The DMV will suspend your license though for failure to maintain insurance, if it hasn't been done already.

Answer 4

Yes, contact the loan department and your lienholder. GAP coverage pays off the loan.

But, GAP coverage does not pay to fix the car. You either fix the car yourself or sue in court.

Answer 5

It is time to seek professional litigation advise. Find an attorney at the website below:

It may be necessary for you to develop a case against other parties. There are some legal options available to you; however, only an attorney can advise you as to what actions to take to ensure a fair assessment of your case.