I was in an accident where someone hit my car, and they were deemed 100% at fault. I spent $18,000 on the car and an additional $8,000 on repairs, but the insurance is offering me $13,000 back, which I can accept since I bought it at an unfortunate time. I still owe $5,000 on the car because I financed it. Will my insurance handle this situation, or will I need to take legal action against the other driver? I don’t want to pay off a car I didn’t crash into.
Someone hit my car and is at 100% fault. Do I still have to pay off the car?
It sounds like you’re in a frustrating situation, but since the driver who hit your car was found 100% at fault, you might have options. Typically, if the other driver’s insurance is paying you for the value of your car, you should be able to use that payout to pay off the remaining loan balance.
Here are some steps to consider:
Contact Your Insurance: First, get in touch with your insurance company to clarify how the claim will work in relation to your loan. If the other party’s insurance is covering the damages, they should also handle any liens or remaining loan balances.
Loan Payoff: In many cases, the insurance payout will go directly to the lender to pay off the car. Make sure to communicate with your lender to discuss how the payout will be handled.
Negotiate with Insurance: If the amount being offered isn’t enough to cover your loan balance, you may need to negotiate further or consider legal action to ensure you’re not left paying for a car you didn’t crash.
Consult a Lawyer: If you’re feeling uncertain about the process or if you’re unhappy with the settlement offer, it may be wise to consult with a lawyer who specializes in auto accidents to understand your rights and options.
Remember, it’s crucial to document all your communications and keep records of everything related to the accident and your vehicle’s value. Good luck, and I hope you can resolve this quickly!