Auto Insurance Claims: Accident/myfault/brand new car/liability insurance only!, brand new car, several thousand dollars

Question
Hi!
I need help so badly! I ran into the back of someone, I fell asleep.  I only had liability on a brand new Cobalt.  I don't know if it is totaled or not. But I don't know what to do with it.  My insurance comp, said do what I want with it.  I still owe the bank for it.  What should I do? Can I trade it back with the dealer? Please help, I am so scared and confused! Thank you...

Khyla

Answer
Hi Khyla,

First, you will need to get the vehicle to a reputable body shop to prepare a repair estimate. That will determine if the car is repairable or not. In either case this is going to cost you a lot of money. If it is repairable, you will have to pay for the cost of repairs which may be several thousand dollars. If it is totaled, you will have to sell the car to a junk yard for a few hundred dollars and will still have to pay the balance of the car to the finance company. This is why it is importance to have collision & comprehensive coverage.

The finance company requires you to have collision & comprehensive coverage when you purchased the car. When the coverage lapsed the finance company should have been notified by your insurance company. Often in these cases, the finance company will purchase what is referred to as "single interest insurance". If this has happened you may be in luck. Although it will not pay anything to you, it will protect the interest of the finance company which means it will pay off your loan. You will need to ask the finance company if they have purchased this kind of coverage.

I hope this helps
Richard Hixenbaugh