You are here:

Auto Insurance Claims/No comp/coll ins on financed auto

Advertisement

Expert: Bennie719 - 3/25/2008


Question
I had a car financed through a local small finance company. Money was short and I switched ins companies and only put liability on my car. I had an accident and now the car is totaled. I am in SC and have been told that there is a law that states I must maintain full coverage ins. The finance company wants there money. What are my options?? They did not ins covergae of there own to cover my car. Can they sue me or have me arrested??

Thanks

Answer
Hi Bill,
They can't have you arrested, but you do still owe them the balance.
If you don't work out a payment agreement with them, they can file suit and you will not only be liable for the balance owed, but also all attorney fees that they incur.

I hope this information has been helpful.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area

Auto Insurance Claims

All Answers

Answers by Expert:

Ask Experts

Volunteer

Bennie719

Expertise

I have extensive knowledge in Personal Auto, Homeowners Insurance and Personal Umbrella coverage. I am also thoroughly familiar with claims handeling procedures. Will answer questions related to the above.

Experience

Experience in the area: Served as an expert at askme.com from 7/2000 thru 10/2002 in the catagories of general insurance, auto and home insurance. Answered 422 questions before that site closed. Licensed in California since 1961, first in Life and Health for 2 + years and as a Property/Casualty Agent/Broker since 1964. I sold my business and took early retirement in 1998. Still maintain a valid California Property/Casualty Agent/Broker license. I have been a volunteer at allexperts.com since 2002. I can provide assistance in the following fields: Property and Casualty Insurance, Insurance Law, Auto Insurance Claims.

Education/Credentials
not applicable

©2012 About.com, a part of The New York Times Company. All rights reserved.