Legal Question in Personal Injury in California

Re: Car accident caused me to be upside down on my loan

Did you sign a release for the property damage? That is not common practice.

Re: Car accident caused me to be upside down on my loan

In all likelihood the settlement you received from her insurance company included an agreement to release the drive and the owner of the vehicle. In that case you have no claim against either to prosecute.

Re: Car accident caused me to be upside down on my loan

I believe both my colleagues are accurate and correct.

Re: Car accident caused me to be upside down on my loan

The car was worth less than you owed on it. Once the insurance company paid the value of the car, his liability for property damage is over. It's not his fault that you owed more than the car is worth. You can sue the owner for whatever damages you still have, like bodily injury. The owner of the vehilce is liabile only for $15,000 per person, $30,000 per occurrence and $5,000 for property damage. You would not be able to collect again for your car damage.

Re: Car accident caused me to be upside down on my loan

Your settlement agreement with the insurance company almost certainly released any claims you might have had against the driver and her father. Such a release would bar any lawsuit against them. This is why it pays to have a lawyer review such agreements before you sign them.

Re: Car accident caused me to be upside down on my loan

I think Mr. Houghton misread your question. His statement that you can still sue the other driver for any physical injuries would be correct if *your* insurance company had compensated you for the loss of your car. Because the money actually came from her insurer, you probably released her from any claims when you accepted the check.

I agree with what Mr. Houghton said about the value of your car. The other driver is responsible only for the damage she caused, which is the loss of the car. She did not cause you to owe more on it than it was worth. You were already upside down on your loan before the accident, and you would be getting a windfall if the other driver had to pay off the loan for you instead of giving you the car's value.