If I am still financing a car and totaled it, what do I do now?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If I am still financing a car and totaled it, what do I do now?
I haven’t yet contacted the dealership. Am I eligible for a felony?
Asked on May 5, 2014 under Accident Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 10 years ago | Contributor
No, it's not a felony, unless have committed insurance fraud, or set it on fire (arson), etc. However, you are still liable to pay off the full value of the financing or contract for the car, even if that exceeds the value of the car when it was totalled or exceeds any insurance proceeds you get. For example: say that that the total cost to finance the car is $25k and that you've only paid $500 so far. Say that when you totalled it, due to depreciation, it was worth $20k. You owe the dealership or lender (whomever provided the financing) $24,500 (the value of the financing less the amount you've paid to date), even if you only get $20k from your insurer--or even if you do not receive anything from insurance.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.