If you do not have insurance is the bank liable to keep insurance on the vehicle?

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If you do not have insurance is the bank liable to keep insurance on the vehicle?

I was in accident with the vehicle I had fianced through my bank. I did not have insurance on the vehicle and I was wondering if the bank is now responsible for the damanages

Asked on June 12, 2009 under Insurance Law, South Carolina

Answers:

L.M., Member, California Bar / FreeAdvice Contributing Attorney

Answered 15 years ago | Contributor

The bank is not responsible for the damages; you are.  Current South Carolina law requires that at the time a driver's license is issued for the first time and a driver's license is renewed, drivers must certify on the driver's license application (DL 447) that they are insured by an automobile liability policy. Presently, the minimum limits for South Carolina are:

Bodily Injury
- $25,000 for the death or injury of any one person, any one accident
- $50,000 for all persons in any one accident
Property Damage
- $25,000 for any one accident

Often when you finance a car, the finance agreement requires you to have at least the minimum level of insurance on the vehicle.  If you did not, you may also be in violation of your agreement with the bank.  In any event, you are liable for the damages and financially responsible to pay for them.

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