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Car totaled, no insurance CA

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muenchen

Junior Member
California
I am buyer, my son co-buyer for car purchased from dealership June 2010. DMV lists car under my name OR my son's name. Only my son drove it. I thought he got insurance, but somehow he "forgot". Then he totaled the car - only he was involved, nobody else - and he was not hurt, nobody else was hurt or involved, and there was no property damage either (car lost control on freeway and rolled over). The officer at accident was going to give him ticket for not having insurance, but then he gave him a few hours to call him and provide him w/insurance policy#. So my son got insurance over phone that day - it does not cover the accident of course, but he didn't get a ticket.
The car is totaled, and he still makes monthly payments since otherwise his and my credit get screwed.
The DMV sent a form today to suspend his and my license if we don't provide proof of insurance (nothing to do with accident - DMV records just have no insurance reported on car yet - we can provide the insurance he got on the day of the accident, which my son is still paying even though he cannot drive totaled car.)
Questions: 1) Do we need to submit a form to the DMV that he had an accident even though nobody else was involved - or will officer do this? If we need to fill out such a form, will he need to provide insurance info, which he did not have at the time of the accident until a few hours afterwards??
2) Does he still need insurance now that car is totaled and not drivable?
3) Does the accident need to be reported to finance company? What consequences would that have with them?
4) Could he sell this totaled car for parts, perhaps to insurance company (gmac)
Ahhh.. last time I helped my kid out with something like this. Thought he could handle the responsibilities, and now he's learning the hard way - and so am I.
 


davew128

Senior Member
How did the lender disburse fund for the loan without having insurance ALREADY in place. I have never seen an auto lender process a check without a binder in place.
 

ecmst12

Senior Member
Kiddo needs to dispose of the car and turn in the tags. Expect the lender to immediately call in the loan since their collateral is now worthless.
 

Zigner

Senior Member, Non-Attorney
Another thing - don't expect that insurance to remain in force...once the insurance company gets wind of the fraud your son committed, they will retroactively cancel.
 

muenchen

Junior Member
How did the lender disburse fund for the loan without having insurance ALREADY in place. I have never seen an auto lender process a check without a binder in place.
Dealership looked at my insurance that i have for my car. I guess they assumed this car will go on my insurance as well, but I was helping my son to get this car - he was supposed to get insurance.
 

muenchen

Junior Member
Another thing - don't expect that insurance to remain in force...once the insurance company gets wind of the fraud your son committed, they will retroactively cancel.
It wasn't insurance fraud, my son is not using the insurance to pay for the totaled car - he never reported the accident to the insurance. He got the insurance a few hours after the accident.
 

Zigner

Senior Member, Non-Attorney
It wasn't insurance fraud, my son is not using the insurance to pay for the totaled car - he never reported the accident to the insurance. He got the insurance a few hours after the accident.
Oh, gotcha - I didn't realize you had all the answers on this. :rolleyes:
 

muenchen

Junior Member
Thx for everyones help

1) Do we need to submit a form to the DMV that he had an accident even though nobody else was involved - or will officer do this? If we need to fill out such a form, will he need to provide insurance info, which he did not have at the time of the accident until a few hours afterwards??
2) Does he still need insurance now that car is totaled and not drivable?
3) Does the accident need to be reported to finance company? What consequences would that have with them?
4) Could he sell this totaled car for parts, perhaps to insurance company (gmac)
 

ecmst12

Senior Member
1. Yes, in CA all accidents with over $750 in damage are required to be reported. He may have escaped the ticket, but he will still lose his license for a year.

2. No, but the DMV needs to know that the car is non-driveable and something needs to be done with the salvage. Most likely the leinholder will take it to offset the amount owed.

3. Yes, the leinholder needs to know that their collateral is now worthless, like I said they will call in the loan since kiddo has breeched his contract and they don't have any collateral anymore.

4. HE most likely can't sell since he doesn't own it. The leinholder can sell and apply it to his balance, though it won't be enough to make much of a difference.
 

muenchen

Junior Member
1. Yes, in CA all accidents with over $750 in damage are required to be reported. He may have escaped the ticket, but he will still lose his license for a year.

2. No, but the DMV needs to know that the car is non-driveable and something needs to be done with the salvage. Most likely the leinholder will take it to offset the amount owed.

3. Yes, the leinholder needs to know that their collateral is now worthless, like I said they will call in the loan since kiddo has breeched his contract and they don't have any collateral anymore.

4. HE most likely can't sell since he doesn't own it. The leinholder can sell and apply it to his balance, though it won't be enough to make much of a difference.
Thanks for these to the point answers. Really appreciate this. A few more questions: I am liable since it is his name OR my name at DMV for this vehicle? Will we both lose license for a year? Also, what do you mean by "they will call in the loan"?
 

ecmst12

Senior Member
Is your name on the title? Is it on the registration? Is it on the loan?

What I mean is they will want the balance due paid in full immediately.
 

muenchen

Junior Member
Yes, at dmv it is shown as my son OR me for car. But I did not have the accident, and he was supposed to get insurance since he was the only person driving this vehicle.
I was going to help him and cosign at dealership, but they ended up putting me as primary buyer and him as cobuyer.
Will they suspend both of our licenses even I had nothing to do with the accident?
The insurance wants immediate payoff. How to avoid getting bad credit if we cannot pay everything at once? They won't be happy if we make regular payments?
 

Zigner

Senior Member, Non-Attorney
Will they suspend both of our licenses even I had nothing to do with the accident?
You'd have to ask the DMV.

The insurance wants immediate payoff. How to avoid getting bad credit if we cannot pay everything at once? They won't be happy if we make regular payments?
You'd have to ask them.
 

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