Elderly Father in Auto Accident

[Delirious]

What is the name of your state (only U.S. law)? Georgia
My father is 80 yrs.old and recently totaled out his 2004 Cadillac - luckily he is alive. Somehow, two years ago, he dropped his Collision but kept all other coverages on his GMAC insurance he has had for 20 years - accident free. We also just discovered he "borrowed" money at his local bank against this car two years ago and they have the title but never required Full-Coverage insurance on the collateral! Now, he has had to scrap his car worth $12,000 for $1200 and still has to pay the bank the loan balance of $4000 -- he is pretty hurt and banged up - unable to work - YES, he still has a part-time job and with no coverage to replace his car. Any suggestions?What is the name of your state (only U.S. law)?

[FlyingRon]

I assume he was at fault in the accident. If so, that's the perils of running without insurance. The fact he took $4000 out on the car really doesn't enter into it. He'd still owe that $4K even if he had taken it in a home equity loan.

His options are to put the $1200 towards the loan or towards a beater car to drive in the interim.

[Delirious]

That's what I thought and what we plan to do. I guess what I'm sitting here stewing about is any possible negligence on the part of the insurance company or the bank...We have Power of Attorney for my father both personal and medical because of his inability to make sound decisions (such as this) and yet somehow he was able to drop his collision AND borrow money without someone requiring coverage on the collateral! We're screwed!!

[ecmst12]

I would humbly suggest that it's time for him to stop driving before he kills someone (or himself). If he can't make sound decisions in other situations, then he certainly can't make them on the road.

It's not the insurance company's or bank's responsibility to make sure he has appropriate coverage, it's his. A POA doesn't STOP him from taking out loans or changing his coverage, it just allows you to make changes also and get information about his accounts. You would have had to notify the insurance company and bank in writing that your father should not be permitted to make any changes or take out any loans without your approval, otherwise how would they know? Also would not have stopped him from going to a different bank for the loan.