My Mom lost car insurance 5 days before an accident she caused. We just lost my father, now i have to step up.

Question

The other day I got a call when I was with my girlfriend that my mom had hit and totaled a car along with her own. Everyone in her car was alright, and the driver of the other fractured her heel. My mom thought she had liability insurance, but we received a notice today that it was canceled due to her being late on the last payment. She was only a day or two late, but they still canceled it. Normally my dad would deal with this, but he died of a heart attack a few months ago. Our family keeps getting hit with problems.

What do we do? She received $40,000 from my dad's pension plan, but that was for her to live on for the rest of her life or until she finds a new husband. The car she hit was a 1997 Olds. Cutlass and Kelly Blue Book valued it at like $1800.

What should we do? What could happen, and how can we deal with it the best?

Answer 1

I find it hard to believe they canceled your insurance because it was a couple day's late.  I have been a month late with different companies and never been canceled.  So without hearing the whole real story, it's hard to give advice.  The bottom line is she was driving without insurance so she will likely be sued for the damages and medical bills.

Answer 2

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Answer 3

As tragic as it is, she has no choice but to pay for damages she caused without insurance out of her pocket.  She can pay it all lump sum, or set up a payment plan with the other insurance company, but it's going to be hers to pay.

Answer 4

Check with your insurance company quickly.  Normal policies have 2 dates:  CNP - cancel non payment & LMD - last money date.  If she went CNP she has approx. 20 days to reinstate her policy...if it was LMD, the policy has been canceled but it's up to management if they the policy to be reinstated.

In regards to the car, insurance companies don't use KKB.  If you read the front of the book, it states that it's a guideline for dealerships on vehicles that showroom quality.  Check AutoTrader or another spot that shows online sales of vehicles like hers.  Find out what the cars worth.  She more than likely has insurance, so you may only get to speak with an adjuster.  

She's got to be careful, if they approach her for payment, they may do an asset search.  I don't think getting a lawyer is the answer unless she has a lot to lose (homes, another car, investments, ect.)  

Good luck & deepest sympathies to you & your family.

Answer 5

Pay for it out of pocket. And move on. Good luck. And set up an automatic payment plan with the insurance so you will never be late.

Answer 6

I'm so sorry for your loss. Hopefully the other party has uninsured motorist coverage on their policy. Since your mom's insurance coverage lapsed, this would be available to them... after they settle their claim, the other carrier will contact your mom to have her repay them. They should make payment arrangements. Good luck to you.

Answer 7

Better get a lawyer to handle this for you.  If she just forks over the money and the other party doesn't sign anything saying that the matter is resolved, they can come after your mom later for more and more and more.  Just be thankful that your mom wrecked an $1800 car and not a $50,000 car!  On the car, you'll have to pay the book value, nothing more.  It's the medical costs that could be negotiated.  That's where the lawyer comes in.