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Rights to Insurance Claims over Accident

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F

fernanda

Guest
I sold a car to my friend on monthly payments to be paid $250/month. I was going to give her the title of the car when the car was paid off. Prior to paying off the balance she got into an accident. The car and the insurance were both in my name, but she was sending me the money for the insurance payments. She was not consistent with the payments. She was skipping months at times. She wasn't even paying the full amount in her payments at times. She got several parking tickets in my name because I am the owner of the car. About one month ago, a car rearended her. The car is now totalled. She still owes me $1300. My question is if the insurance company is going to send me the check since I am the owner of the car, is it legal for me to give her back her money that she has already paid me for the car and I will keep the rest of the money from the insurance. Here's the Math. She has already given me $3000. The insurance company will most likely give me about $6000. Can I give her back the $3000 that she already gave me on the car and can I keep the rest of the Insurance money since she did not fulfill her side of the contract.

P.S. I live in California
 


L

lawrat

Guest
I am a law school graduate. What I offer is mere information, not to be construed as forming an attorney client relationship.

You sold the car for 4,300?
The insurance company will give you 6k?

So you are asking if you need to either give her back 3,000 she has already paid you?

Well, with the 6k you stand to make more money for it than if she bought it. YOu make 1,700. Now, the insurance money will make you whole. but, did you have this in your agreement about in case an accident should occur? She did use the car for those months, so you are entitled to the money for the time she did use the car. Think of it as a lease: she doesn't have to pay on a totaled car anymore and she paid you for the time she used the car.

If she has a problem with it, let her take you to small claims court and go from there.
 

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