Legal Question in Insurance Law in Virginia

Insurance Co. Defaults on Paying Balance to Lien Holder After Accident

When a deer causes and accident that totals a vehicle having full ins. coverage, how can the Ins Co. legally default on paying a portion($3,ooo.plus) of the balance due to the lien holder? The credit company only loaned what the vehicle is worth. No other vehicle was involved and no ticket was issued. Shouldn't comprehensive cover the total? Thanking you in advance for any input.


Asked on 3/28/06, 10:15 am

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: Insurance Co. Defaults on Paying Balance to Lien Holder After Accident

The insurance policy likey covers no more than what the vehicle is worth. The fact that you owe more than it is worth (a very common situation with relatively new vehicles) does not impact what they owe if the car is totaled.

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Answered on 3/28/06, 11:07 am


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