Seller's car had no insurance

[deckscrew]

What is the name of your state? California

Two years ago I was test driving a car, and I backed into another car. The owner and I exchanged information. I told the seller about the accident. I later agreed to buy the car and added $250 to the price for the deductible.

About a three months later State Farm (the other driver's insurance) called me looking to collect over $2,000. I turned out the seller had no insurance. I told them I didn't own the vehicle at the time, and passed all my information on to them. Later I got a letter from a collection agency looking for the money. I sent a letter and disputed the charges.

Yesterday I got a phone call from a collection agency demanding money and saying if I did not pay the amount they claimed was due they would report me to the California DMV and have my license suspended. This would be a disaster, because my job requires me to drive a lot. Can they do this? Am I responsible for the accident?

Thanks in advance for any advice?What is the name of your state?

 

[Zigner]

Can they do this? Am I responsible for the accident?

Yes and Yes

Thanks in advance for any advice?

Pay your bill - and you're welcome.


(Why would you think you're NOT responsible for the accident???)

 

[moburkes]

You caused the accident, so you're responsible for the damage you caused. You should attempt to make payment arrangements.

 

[Zigner]

After re-reading this, I'd have to say that I think you're wrong about the seller "not having insurance". If they didn't, then you'd have lost your license for a year for driving without insurance.

 

[moburkes]

Zig, I'm not sure what you mean. The seller didn't have insurance, but, without a police report, the DMV wouldn't be involved.

 

[JustAPal00]

Did you have car insurance at the time? Since you purchased the car and then I assume purchased insurance, shouldn't your insurance cover the accident since you were in the process of purchasing the vehicle. Insurance companies can't expect you to tell them every time you test drive a car you are considering buying! If you were uninsured at the time, I still would contact your current insurance carrier since you were in the process of purchasing the car that you are now insuring.

 

[Zigner]

Zig, I'm not sure what you mean. The seller didn't have insurance, but, without a police report, the DMV wouldn't be involved.

OP did over the threshold amount of damage ($750 I believe now) that requires a DMV report. So, if the OP didn't get a license suspension, it is because he violated THAT law.

EDIT:
Let me rephrase a bit...OP was a driver involved in an accident in which there was over $750 damage to a vehicle...

 

[moburkes]

OP did over the threshold amount of damage ($750 I believe now) that requires a DMV report. So, if the OP didn't get a license suspension, it is because he violated THAT law.

EDIT:
Let me rephrase a bit...OP was a driver involved in an accident in which there was over $750 damage to a vehicle...

You're right. He might have. I didn't understand how you equated the 2 unless the report was completed. That's all.

 

[alnorth]

Insurance companies can't expect you to tell them every time you test drive a car you are considering buying! If you were uninsured at the time, I still would contact your current insurance carrier since you were in the process of purchasing the car that you are now insuring.

If he was uninsured at the time, he's screwed. The insurance companies arent quite that foolish, they typically set the effective date at the day after purchase (or if they cover same day, they will spell out a time). There have been many uninsured drivers who get into an accident, panic, and head straight to an insurance agent to try to get their uninsured accident covered. That trick is pretty well-known and doesnt work.

If you dont have insurance and are thinking of buying a car, you should have the insurance in place before you get behind the wheel, at least a non-owner liability policy.

 

[JustAPal00]

I wasn't sure how that worked. I have had a non owners policy before, but I can also remember back when I sold cars, several times I sold to people who had no insurance and were buying for the first time. Or had sold their car when they got a long suspension and were now getting another one.

 

[deckscrew]

Thanks for some of the replies. I did insure the vehicle after I bought it. It was not purchased at the time of the test drive because the owner failed to provide a smog test.

After the car passed the smog test I purchased the vehicle, registered it and insured it.

 

[alnorth]

I wasn't sure how that worked. I have had a non owners policy before, but I can also remember back when I sold cars, several times I sold to people who had no insurance and were buying for the first time. Or had sold their car when they got a long suspension and were now getting another one.

I have heard of sob stories where a guy drives a sparkling new car off the lot and he's on his way to the insurance agent when he hits someone and trashes the car. >$10,000 loan, wreckage gets sold for scrap, no insurance, he's on the hook for thousands of dollars on a car that no longer exists.

If you already have insurance on another car or a non-owner policy, most insurance policies give you a grace period of at least a couple weeks when you buy a new car before you have to tell them.

 

[JustAPal00]

My company gives you 30 days. Come to think of it we used to have to call agents from the showroom to get binders on car sales for people with no insurance. It's been over 20 years, so I had forgotten. So basically OP you should pay the damages now before the costs get any higher. You did mention that you added $250 for his deductible. Does it say it on the bill of sale? If so maybe you can go after the seller for falsely representing that the car was insured!

 

[Zigner]

My company gives you 30 days. Come to think of it we used to have to call agents from the showroom to get binders on car sales for people with no insurance. It's been over 20 years, so I had forgotten. So basically OP you should pay the damages now before the costs get any higher. You did mention that you added $250 for his deductible. Does it say it on the bill of sale? If so maybe you can go after the seller for falsely representing that the car was insured!

I think the car WAS insured. It is the OTHER party's insurance who is going after him. The $250 would apply to repair of the vehicle he was buying. There is no deductible on liability payouts to other parties.

 

[JustAPal00]

I think the car WAS insured. It is the OTHER party's insurance who is going after him. The $250 would apply to repair of the vehicle he was buying. There is no deductible on liability payouts to other parties.

I see said the blind man!!! Is it possible that the other drivers insurance co is going after both the OP and the owner of the car, and if the OP can't pay the owners company will have to?