Legal Question in Insurance Law in California

Who Pays The Loan

I was recently in an auto accident and it was the

other driver's fault since she was following to

close and not paing attention. She wasn't sited

but the police report summery does indicate she

was completely at fault. My car is still financed

by a lien holder and the amount I'm being paid for

the vehiclie is less than the payoff amount. Is it

the responsibility of her insurance carrier to

payoff the loan since the car is a total loss or

do I have to payoff the balance the


Asked on 5/17/99, 12:01 pm

2 Answers from Attorneys
Ken Koury Kenneth P. Koury, Esq.

Re: Who Pays The Loan

You pay the loan

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Answered on 5/21/99, 3:09 pm
Steven Murray Steven W. Murray, APC

Re: Who Pays The Loan

If the person who hit you is at fault, she is responsible

for all damages she caused to you. That includes

the fair market value of your vehicle, from which

you will have to pay off your loan.

Also, your own insurer must pay you the fair market

value of your vehicle, without regard to the loan

balance. If the value your insurer places on the

vehicle is less than the loan, you can try and

collect the balance from the defendant if you can establish

that the value was higher. Of course that means your

own insurer will have paid you too little.

The defendant is also responsible for any other damages

(expenses) you incur (rental cars, lost wages, etc.)

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Answered on 5/31/99, 2:47 pm


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