Loan from friend-car got totalled

[Amm23]

I live in the state of michigan. In march, a friend loaned me money to purchase a used car. We signed an agreement that only states i am to make monthly payments until balance is paid off. We got into a car accident, and the car was totalled. I had PLPD insurance which is the lowest insurance which is required by michigan law. This insurance does not reimburse you for the car. She did not put a lien on the title, and did not stipulate in the agreement that i was to have full coverage, or that the car was to be collateral. She is now threatening to take me to court because she believes the car was collateral, and now that it is totalled, there is no collateral. I have applied for a loan, but was denied until i can get my credit report to fix it. My questions are: Because she didn't put a lien on the car or stipulated it was collateral, then the car wasn't collateral? The vehicle was insured properly because i had plpd per michigan law? I think she is just trying to intimidate me, but i want to know.

 

[wtd]

Don't know about the law here (I'm not a lawyer), but it would seem that -
1) Your friend loaned you X dollars.
2) You agreed to repay the amount in monthly installments.

If you're making the payments as agreed, (you didn't do something foolish like stop making payments because the car was longer drivable, did you?) the automobile would seem to have nothing to do with it. Buying the car was simply the manner in which you chose to use the money that your friend loaned you.

Just my take on it -
wtd

 

[Amm23]

I have made all but 2 payments. I have valid reasons. SHe told me if i should ever have problems, to let her know-she didn't want to leave me broke. I offered the payment and she said i could wait. But, other than that, i have made my payments. I haven't breached our agreement.