Auto Collision and Potential Insurance Issues
My girlfriend was involved in a collision tonight and is understandably worried about certain aspects of the situation. I’d like to help her navigate this, but I don’t have much experience with these matters.
In New York State, she parked legally on the side of a one-way street in an urban area. When she opened her door, another car struck it while in motion. Thankfully, she is completely uninjured.
Unfortunately, her car door is damaged beyond repair, and there may be frame damage as well—we’re waiting to find out. The other driver’s vehicle sustained some damage but remained operational. The police arrived and filed a report, and insurance has arranged for a tow truck.
She was parked all the way to the curb, while the vehicle in front of her was further out. It seems to me that the other driver would have had to be dangerously close to the curb to hit her door.
The car is leased, and the lease agreement stipulates that she must have collision coverage. She had collision coverage with her 2024 StateFarm policy, but it appears to be missing from the 2025 agreement. She believes it auto-renewed, but she doesn’t recall signing anything to confirm this.
I have three main questions, but any general advice would be appreciated:
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Why might collision coverage have been removed from the 2025 agreement? Could this be a mistake that she can hold StateFarm accountable for?
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How serious is her liability regarding the lease agreement? Could they potentially sue her for breach of contract?
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What steps can she take to avoid facing significant financial repercussions?
I’m sorry to hear about your girlfriend’s situation; it can definitely be stressful dealing with car accidents and insurance issues. I’ll do my best to address your questions:
There could be several reasons why collision coverage appears to be missing from the new policy. It might have been an oversight during the policy renewal process, or it could be due to a change in her coverage choices that she may have unintentionally made. Sometimes insurers will automatically renew with the same coverages unless the policyholder specifies changes. It’s important for her to contact State Farm directly to clarify why the collision coverage isn’t active and if it can be reinstated. If it was a mistake, she may have grounds to hold them responsible, especially if she did not authorize any changes.
How screwed is she vis-a-vis the lease agreement?
If the lease agreement explicitly requires collision coverage, and she did not have it active at the time of the accident, she could technically be in breach of that agreement. However, whether or not the leasing company would pursue legal action or any significant consequences often depends on their policies and the specifics of the situation. Many leasing companies might seek to recover costs for damages but typically will work with insurance companies to resolve claims. It would be wise for her to review her lease agreement closely and possibly consult a legal expert for clarity on her obligations under the contract.
How can she avoid ending up on the hook for tens of thousands of dollars?
Encourage her to remain proactive in addressing this situation. Staying organized and documenting every communication will serve her well in navigating this issue.