Was in a wreck and no collision insurance.?

First check to see if the lien holder went out and bought insurance on "THEIR" car when they found out the insurance had lapsed. Lien holders often do this. If they did not buy insurance be prepared to pay and pay and pay out of pocket.

If the vehicle was not insured, how can the vehicle be "totaled" since ONLY insurance companies can "total" a vehicle?


People just LOVE to throw around the word "totaled". It is as if they are bragging.

"i don't know what to do"...this is not your problem

there are a lot of holes in this story
1) insurance would have contacted the lien holder once collision was dropped
2) every year when insurance renewal comes up, they don't add or take away anything unless you contact them...you just keep making payments
3) if story is true, he should have noticed all of a sudden his insurance was a fraction of what it was without collision

as I said, a lot of holes in your story.

Yes, the lender requires you have insurance while there is a lien on the vehicle, but it is up to the registered owner to make sure he or she has that coverage. The "I never got the letter" won't fly, especially since there were at least three letters send. One to send the form, another to say since the form wasn't returned the insurance is canceled, and one from the lender after insurance telling them there was no longer any coverage saying to prove coverage.

Advice: Continue making payments, and get your insurance fixed. Did someone move and not give insurance the new address? That's what it sounds like.

There may be another letter out there never received from the state saying his license is revoked for not having insurance.

Tell him to get on the phone now.

There are a few things that dont make sense here:

If his insurance company sent a letter stating he must sign or lose his coverage, but he didnt get it, where did it go? Did they send it to the right place? had he changed his address and not informed his insurance company?

Did they send a notice once the insurance was canceled? They should have reissued insurance cards. Where did all of those documents go?

The insurance company should have known about the lien holder/bank. They would have notified the bank that your bf was dropped from his full coverage, and the lien holder would have sent him letters demanding he fully cover THEIR investment or they would cover it themselves, and then tack on the cost of the coverage to his monthly bill.

In any case, it is your bf's responsibility to make sure he is covered. Period. He is responsible to pay back the amount that was borrowed, no matter if he was in an accident or not. Typically insurance would cover the car in case of the accident, but since your bf was negligent in making sure he was covered, he is the one responsible to continue paying. UNLESS he can prove they never sent the letters or the letters were sent to the wrong address at their own fault. For example, lets say they put 2400 main st instead of 4200 main st. But good luck proving they made a mistake.

States typically only require liability insurance. it is the lender who requires collision and comprehensive coverage. Unless he did not tell Progressive about the lien holder, they should have known that he still needed full coverage. And depending upon how often he was billed, he should have noticed either a refund or price difference when collision and comprehensive was dropped.

Any clue what the letter was about or why they dropped it?

That is a problem with cheap a^& insurance companies.

Cobra is partially right. Unless he bought the car from a buy here pay here dealer, the lender owns the vehicle until the loan is paid off. The dealer was paid for the car and has nothing to do with this.

The only way to get the correct answer is to call the insurance co. They have the final word.

Insurance and ownership of a vehicle are two different things, until the vehicle is paid for it belongs to the dealer, regardless of whether the driver has insurance or not.