QUESTION
can you sue for remaining balance owed on a totaled vehicle in an accident not my fault?
Asked on Sep 06th, 2013 on Automobile Accidents - North Carolina
More details to this question:
Was in a car accident, other driver was at fault. My insurance company said my vehicle was a total loss. They wanna give me a check for market value of my car. I got my car from a buy here/ pay here place. I have been making biweekly payments. My ins. co. said the car isnt being leased, it has a lien. Im being told that I still owe the remaining $5,000 for the vehicle. Can I sue the at fault insurance co for the remaining balance and for lost lost wages? No one was hurt in the accident. I have 2 jobs. I require a vehicle for my 2nd job as Im a delivery driver. I have already missed a week of work. I was never offered GAP insurance, never heard of it until after accident. Please help.
1 ANSWER
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Dear Anonymous:
Unfortunately, the answer is no. Your damages are measured by the value of the property you lost. If the car is worth $5,000, but you still owe $10,000 on it, you cannot recover the difference from the at-fault driver. If it were otherwise, people could enter into ridiculous agreements ("I'll pay $100,000 for this 1979 Ford Pinto, which is worth fifty bucks.") and then make a claim for the money they still owe, even though the property they lost was never actually worth what they are claiming. This problem of owing more than the car is worth is why some people purchase GAP insurance, which pays the difference between the value and the amount owed in the event the latter is greater than the former.
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Answered on Sep 11th, 2013 at 10:59 AM