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Do I have to pay off my loan if I get in an accident in a financed Ford Mustang with only liability insurance?
I financed a Ford Mustang for $20,000. When I called to get insurance, I forgot to tell the agent that I needed full coverage. A week later, I was in an at-fault accident that totaled the car, and now the insurance is denying my claim. Do I have to pay for the rest of the loan?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“This is going to be one of those life lessons you have to learn the hard way.
It’s not up to the insurance agent to choose your coverage for you. Since you only chose liability (and the dealer will rarely check whether you actually bought full coverage), you’re on the hook for the remaining balance of the loan after the lender sells the car for salvage.
In the future, make sure you have
comprehensive coverage
and collision coverage
on any car you decide to finance.”View full answer
- Gregory R.
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