[casbryant]

I have been allowing someone else to drive a car that I still have a lien on. He has been paying me the money for the payments and I have been sending it in. The plates are in my name as is the registration. Nonetheless, he was able to get full coverage insurance on the car. We have a written agreement that he is responsible for all damages & etc and once the car is paid in full he will receive the title. I had him get insurance with my agent and had myself put as an owner on the car so as if the insurance was ever close to canceling, I would be notified. Recently he was in an accident. No fault has been determined, but the car was totaled. I called today to let the insurance agent know the car had been totaled and I was informed the insurance had been canceled; therefore, there was no coverage according to them at the time of the accident. I never received any notifcation on the cancellation or was given an opportunity to pay it. Regardless of all of this, I am worried that if he is found at fault and it is deemed he had no insurance what will be my consequences? I know his license can be suspended, but can mine? Who would the other driver have to go after legally to get his car repaired? Will the lien holder demand full payment on the car? Any help or information would be appreciated.

[Fr_Chuck]

The other driver can come after both you and the other driver to pay for the damages.

Depending on your state law, since you allowed another someone to drive your uninsured car you may have license issues until the other cars damages are paid for.

Your largest mistake was not keeping the insurance yourself and making them pay you for it, until car was paid for.

Your lien holder will not have a problem if you just keep making your payments.