Legal Question in Insurance Law in Texas

Auto Loan Payoff After Collision

I was rear ended by another driver, my car totalled, and other driver's insurance paid my claim. But I was upside down with no gap insurance and left with $2500 balance to lender. Should I try to collect from their insurance, or does this go to small claims court?


Asked on 3/25/08, 6:15 pm

1 Answer from Attorneys

Donald McLeaish McLeaish&Associates;, P.C.

Re: Auto Loan Payoff After Collision

A court can only award what the car was worth..NOT what you owe. Many times the debt on the car exceeds the market value..so you have no one to collect from..IF the insurance paid what the car was worth..and you signed off all claims against the insured person by accepting the payment

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Answered on 3/25/08, 10:23 pm


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