Stolen Car, Auto Loan, Insurance Not Covering It, in Massachusetts

[nerd24]

This is from the state of Massachusetts.

I went on a trip to Chicago and my car was stolen. I informed the police and insurance immediately. The police have still not recovered my car. Insurance is saying they will not cover the theft or my $6,000 loan since I did not have full coverage.

I applied for full coverage when I bought the car. The insurance company requested I get some pictures taken. I never did. Apparently they sent a letter informing me that because I neglected to get the pictures taken, I was switched to basic coverage. For whatever reason, I never saw it.

Is fighting this a lost cause? Also, I thought it was illegal not to have full coverage in Mass, wouldn't they have had to cancel my insurance or something? Shouldn't the insurance company have informed the bank that coverage was dropped?

Any help is appreciated.

[lwpat]

Have you made a formal claim and has it been formally rejected (is everything in writing)? If so your best avenue is to file suit in small claims courts assuming it goes up to 6000. The question will be whether you actually paid for full coverage.

[nerd24]

Nothing is in writing? but they recorded the conversation when I made the claim and rejected me over the phone. They are saying I have been paying for basic.

No luck?

Have you made a formal claim and has it been formally rejected (is everything in writing)? If so your best avenue is to file suit in small claims courts assuming it goes up to 6000. The question will be whether you actually paid for full coverage.

[Betty3]

The max. small claims court amt. in Ma. is $2,000.

[jk]

I applied for full coverage when I bought the car. The insurance company requested I get some pictures taken. I never did.

So, what does that little packet they sent you that said "insurance policy enclosed" say as to your coverage after you purhcased insurance.

As well, they required you to take an action to secure full coverage insurance and you admittedly have failed to provide said information. Whose fault is this??

Not sure as to requireing full coverage in Mass but most creditors reqquire full coverage as part of their contract with you. In failing to purchase such insurance, you would be liable to the creditor for the debt owed, totally.


You want to play the blame game here so start in the right place.

Walk in to your bathroom and look in the mirror and say, "it's your fault" at whomever you see in the mirror. That is where the blame starts and, probably, ends.

[nerd24]

I obviously just wanted advice. You said it, I admitted to not having the pictures taken. I wasn't blaming anyone. I was looking for an angle.

But thanks?

So, what does that little packet they sent you that said "insurance policy enclosed" say as to your coverage after you purhcased insurance.
iously
As well, they required you to take an action to secure full coverage insurance and you admittedly have failed to provide said information. Whose fault is this??

Not sure as to requireing full coverage in Mass but most creditors reqquire full coverage as part of their contract with you. In failing to purchase such insurance, you would be liable to the creditor for the debt owed, totally.


You want to play the blame game here so start in the right place.

Walk in to your bathroom and look in the mirror and say, "it's your fault" at whomever you see in the mirror. That is where the blame starts and, probably, ends.

[nerd24]

What about the auto loan? Is defaulting on the loan worse than claiming bankruptcy?

[jk]

Chances are if you would default, the creditor will take whatever action is available to them to collect, until paid in full. I do not know what is allowed ni your state off the top of my head (maybe somebody will fill in the correct allowances) but in some states, many things, including garnishment of wages, levying of bank accounts, leins against property and other things are possible to a creditor. In other states, there is not much that can be done to collect the eventual judgement.

To consider BK for this relatively small amount would be foolish. The laws have been restructured to make BK a less attractive option and harder to be utilized. To wreck your financial future for at least 7 years for $6000 is not a wise decision.

[nerd24]

Thank you. You have been really helpful. I appreciate it.

Chances are if you would default, the creditor will take whatever action is available to them to collect, until paid in full. I do not know what is allowed ni your state off the top of my head (maybe somebody will fill in the correct allowances) but in some states, many things, including garnishment of wages, levying of bank accounts, leins against property and other things are possible to a creditor. In other states, there is not much that can be done to collect the eventual judgement.

To consider BK for this relatively small amount would be foolish. The laws have been restructured to make BK a less attractive option and harder to be utilized. To wreck your financial future for at least 7 years for $6000 is not a wise decision.