Auto Insurance Claims: Lien Holder on Car that was totaled, lien holder, collision coverage

Question
QUESTION: I have a lien holder (Title Max) on my car.  If my sister gets in an accident and totals my car and the other parties car and it's written up that it's her fault.  Am I responsible for the other person's car since the car is in my name?  What about the lien holder?  What about my sister?

Part II  Both my sister and the other party were rushed to the hospital by ambulance having minor injuries, the officer never got my sister's statement on what happen, the accident occurred in front of a gas station (chevron) and he wrote it up as being my sister's fault and had no witnesses.  If we don't agree, what can be done?  Can the people sue me because of the police report?

ANSWER: Hi L,

If your sister was driving your car and she was at-fault in the accident, then your liability insurance will pay for the damage and injuries in the other car. If you have collision coverage on your policy, your insurance company will also pay for your car less your deductible. If your car is totaled, your insurance company will pay your lienholder first and any balance will be sent to you.

Your sister should contact the police officer to see if he will revise his report based on her statement if it needs to be revised. It is possible that he was able to determinefault based on the other drivers statement alone. In either case the insurance companies will take statements from both drivers and will determine fault on their own.

If it is determined that the other driver was at fault then the damage to your vehiclke and your sisters injuries will be paid by the other persons insurance policy.

As long as there is insurance in place it is unlikely anyone will be sued. In most cases the insurance companies will work out a settlement.

I hope this helps
Richard Hixenbaugh

---------- FOLLOW-UP ----------

QUESTION: What do you think will happen if there was no insurance?

Answer
Hi L,

If your car had no insurance and your sister was at fault then she will likely be sued by the other party or their insurance company.

If your sister was not at fault and the other car did not have insurance then you or your insurance comapny will have to sue the other driver.  

You should first determine if the other driver had insurance and if you had insurance. If neither of you had insurance then one of you will have to sue the other and a judge will determine who was at fault and who owes what to whom.

I hope this helps
Richard Hixenbaugh