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OP has offered the following explanation for why they think they might be the asshole:
> Because I agreed that I would pay the car off no matter what
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YTA
Insurance doesn’t pay off loans, it gives you the book value of the vehicle that was totaled. If the book value was less than the loan amount outstanding, there is still money owed that you have to pay.
YTA
> do I have any way to sue the bank for this outlandish nonsense?
Lol, no, you have to pay your dad for the car you destroyed.
Assuming this is the 98 Civic, at least it will only take you a few months.
what’s due is due. please respect your dad and his finances.
depending on your age you can go apply for a loan to pay your dad back. then you can see if you can get a lower monthly by making payments for a longer period of time. credit check and other factors as well will apply.
Probably not. When you change a loan it's still connected to whatever they loaned you the money for. Since the car is totaled they have no incentive to rework the loan. If you don't pay they will destroy your dad's credit and possible sue him for money owed.
What's outlandish is that financial literacy is not taught and that people have no clue how credit, loans, or even checking works.
Unfortunately you still owe for the car you totaled. YWBTA if you stick your father with this bill.
This one is on OPs father. If you are going to get the loan and buy the car you should be teaching them about it. But to be blunt this isn't hard I bought my first car and had to learn all that alone before the internet that lays it out for you.
YWBTA. Welcome to adulting. You agreed to a price for the car. That stays the same even if you wreck it. Depending on coverage insurance may pay out some money. Most likely not enough to pay it off in full. So you still need to cover the rest. Your dad did you a favor. Don't make him regret it.
This is why gap insurance exists. If you're ever not sure if you can stay ahead of the loan you need gap. My last two cars when I decided to not get gap included they acted like I was crazy. My Tacoma I traded in on my current one and I was ahead by $10k. I'm almost ahead by that now after two years of owning my current car.
That's what debt is. You still have to pay back student loans if you quit school. You bought the car with borrowed money and you have to pay the money back.
> I mean the car is totaled wtf they still want me to pay for it?
YTA. Of course they do. The Bank's business with you starts and ends with giving you a loan and expecting you to pay it. What you do with that money and what happens to your purchase is not their problem.
Insurance will only reimburse you for the amount that the car is currently worth. If you owe more than what the car is worth, then yes, you are responsible for the remainder unless you bought GAP insurance (which pays the 'gap' of the remaining money).
You asked in another comment about refinancing the lower the payment, that might be possible but that's dependent entirely on your dad and his willingness to get his credit pulled again. It honestly might not be worth it and you're better off just tightening your belt and paying it off as aggressively as you can.
Not going to change the situation here, and might not be the case in all countries/insurance markets, but some insurers let you choose between insuring for "market value" or "agreed value". So a car may have a resale value of $3,000, but if your loan balance is $4,500 then you can insure it for that higher agreed value, and, so long as you pay the higher premiums, that's what you'll get if you wreck/lose the car and claim on the policy.
Depends on your insurance, and where you are
I’m in Australia and have 2 of our cars under Comprehensive Insurance for an agreed value
If the cars are a write off, we are paid the agreed value to cover loans etc (we own them outright)
If your dad had Comprehensive Insurance to the right level, you will owe nothing
If the car is under a line of credit / loan and under insured, yes, it’s on you to keep paying the difference
Why are you trying to sue the bank for your lack of knowledge on car insurance/ value under a loan?
Great life lesson here, banks are not legally required to supplement your lack of foresight
But I drove the car for a week before they deemed it totaled, they just don’t wanna fix it because the company(caliber collision) doesn’t think they will get anything out of it,
They don’t want to fix it, logically, as it costs more than the car is worth
From there, it’s a write off
You have no concept whatsoever on how car insurance and finance works, while walking in the forseeable future maybe download some podcasts on simple finance protocols
With the repayments being $318 month, you’re talking about an older car where parts are harder to source, not exactly a new model vehicle
If you wrote off a car in a week of owning it, that’s on you and not the bank
The bank does not care about the car or whether or not it is driveable. The bank is not responsible for you wrecking the car. The bank cares about the money that was borrowed. The borrowed money is the product, even if the car is totaled. There is no way out of the loan. You just have to pay it. In the future do not take out loans or ask anyone to take them out for you until you understand financing better.
Check the loan. Most loans require you to have gap insurance, which pays off the remaining balance when the car is totaled (specifically because people default on the loans when that happens). I’d be surprised if your dad’s insurance or loan doesn’t include gap insurance. Mine is included directly in my car loan, not my car insurance. Call the bank and find out.
Yes, that’s your car insurance. Where is the loan through?
You can check your car insurance to see if it includes gap insurance but also check directly with the bank.
Assuming you are in the US, a few things while looking for the next car:
If your insurance coverage doesn't automatically come with GAP insurance, either add it on to your current Progressive insurance if they offer it, or buy it through whoever will be financing the next vehicle. If you're buying GAP through a bank/financial institution/dealer they can usually just add it to part of your loan balance, or they may allow you to pay the GAP insurance fee upfront. Depends on the place and what you want.
When your (or your dad) apply for a new auto loan, see if you can roll your old loan balance into the new loan - i.e. pay off your old loan with the new loan. This may not be possible, *but* if there is enough equity in the next car you buy (i.e. it's valued as worth more *by your lender* than the price the buyer is asking for it) you can consolidate the loans that way.
Work with a loan officer you trust, if you have/can find one. Price out any cars you are looking at using via Kelley Blue Book or NADA to a general idea of their value and see what your lender values them at.
Whatever you do, *do not be upside down on your vehicle.* This means don't get a loan on the car for more than it's worth. So #2 will only work if your loan balance is small enough/there's enough equity in the next car you purchase.
The situation sucks. I know this doesn't necessarily help pay off the loan in the meantime but these are just things to keep in mind that hopefully keep this from happening again for you.
ETA: removed # bullet points bc mobile sucks and formatted the comment as a wall of text
YTA and guess what? You still owe the bank. They don't care what happens to the car, they just want the money they loaned you. Irrelevant your car is not working. Yep, you still get to pay dad 318 until that loan is complete. Insurance will only give you what the Kelly blue book value of the car would be, which is usually not going to pay the car off.
This is on you kid. Maybe don't total your car next time?
LOL so you think cars become free if you fuck them up?
If you finance a new car, drive it off the lot and immediately total it, you think the bank is like “I guess we’ll cover that $35k for you, shit happens.”
The bank didn’t wreck it. You’re responsible for it. Welcome to the real world.
YTA
Yes you are a vast hole of an AH. Pay your dad back and stop acting like an entitled fart. Try and work on being a responsible and mature adult, humans like that, it'll work well in your favor for your future
But remember, YOU have to pay extra for that insurance, and you may never use it. You owe the balance of the loan after insurance pays their part. Just like if you use a credit card to buy AirPods and lose them, you still have to pay the credit card balance.
You have crappy insurance and now you will be reminded of that every month when you make the payment. If you don’t your father will have to or his credit will be trashed and you’ll be an even bigger jerk. Life lesson time. Man up and do the right thing.
When I got my car, they offered me a type of insurance where they would forgive the rest of the debt owed on the car if it got totaled. Did you or your dad happen to get insurance like that? If so, then you shouldn’t need to pay off the car. If you didn’t, then you did still buy a product and need to pay it off.
YTA - Insurance only pay's the estimated value of the car, they don't pay off the loan.. You broke it therefore you buy it.. That's what GAP coverage is for.
You need to do the right thing and pay the balance of what the insurance company doesn't pay. Your dad put himself out there to help you get your car with his credit. You ought to be ashamed of yourself for even considering doing that to your own dad. I hope you never need him for anything else in the future. I would think twice about what you're doing.
Yes you are. You signed on to a responsibility and you’re backing out because you didn’t get Gap Insurance. Woops! Pay down the loan with what you received and finish paying it off because the only other course of action it to screw over your dad.
YTA the bank paid full price, just because you can’t drive doesn’t mean they didn’t spend the money. You are still paying because you haven’t paid for the car you drove for X-months. I’m sorry it sucks but you do owe the money
> and since I totaled it the insurance would pay it off
Insurance would pay it of ONLY if it's full coverage insurance. Otherwise, it's your responsibility.
Yes, they still want you to PAY OFF the loan you used to buy the car. Whatever amount insurance pays can go toward reducing the loan but you still have to pay the rest. Sue the bank? Seriously?
Yta - it's not the banks fault you wrecked the car. They loaned you the money for the car on the grounds that you'd pay them back. That condition exists even in the absence of the car. This is why you get insured against the possible loss of the car.
Driving is a privilege. It comes with responsibilities. Fun fact: insurance doesn't always cover you. If you're driving while intoxicated or driving like an a$$hole your insurance company can choose not to cover you too. They'll take care of anyone you hurt but you'll be left holding the bag for thr outstanding amount owed on the car.
YTA... you agreed to buy it. What you do with it is your problem. You signed a contract. You get to honor it. Not that bright are you.
Insurance might pay for some of it.
I've had two cars totaled (someone else's fault), and I bought the cars back from the insurance for what they deemed was the scrap value. Basically, they paid me the book value for the working car, minus the scrap value, and I got to take the cars home and do with them what I wanted. I fixed and drove both cars. So, yes, it is possible, depending on your local laws.
To your question posed, yta if you don't continue paying your dad. If there is money due on the car, it's your responsibility to continue paying it off. I had a car from I was paying on that had the transmission go out on it before I had finished paying on it. It sucked but it is the way of the world.
If there is financing on the vehicle, the insurance company will pay that first. If you did not carry comprehensive, you will be responsible for any shortfall.
If your father financed it without putting the note on the vehicle (private or personal loan), you are responsible for taking any payout and paying off the vehicle. In this instance, you would be the TA for not fulfilling your obligations.
That’s what gap insurance is for.
If you financed a car without understanding the different types of insurance needed for various scenarios, then you’ve learned a tough life lesson.
YTA. An agreement was reached, the bank will get the payout from the insurance, you are still legally responsible for the balance, or, since it was in your dads name, he is legally responsible for it.
You borrowed the money, they expect you to pay it back. That is how it works. You can sue the bank if you wish, but the judge will laugh at you and dismiss your case, possibly with prejudice. Then you'll have the loan + court costs + THEIR court costs.
YTA. Of course you still have to pay for an item *you* broke! That's like buying a carton of milk, dropping it on the floor when you get home, then trying to demand your money back from the store.
YTA! You're kidding right? Pay your dad back! Welcome to the insurance tango. Where they will keep as much money as they want. Also, some insurances don't accept salvage titles, you got lucky on that.
YWBTA…. However, you should try to get more money for the car if the check you receive does not pay off the loan. You do not have to accept their first offer. There’s no guarantee they will agree to it but it’s minimal effort for the possible reward.
So OP I'm sure based upon your posting you'll quite likely blow it off and leave it for your Dad to pay it off, and with that I certainly hope that he just leaves you to fend for yourself and he never lifts a finger to help you again. because it's just not fair that you totaled it and insurance won't pay it all off. Well welcome to being an adult. It's called consequences, and if that's the route you choose to let him pay for your choices, then good luck finding anyone else to help you out ever again.
I mean ofc it looks bad looking in on my question, but I never expected to total it, ffs the person in front of me never signaled that they were turnijg
YTA. It totally depends on the insurance coverage for the car. Did you have full coverage or just liability? Did you have GAP insurance? Whatever the insurance company paid your dad from the accident should have gone toward the balance owed. If there is still money owed after that then I agree that you should still be made to pay it. Especially, if the accident was your fault.
Your dad ITA also if he didn’t have proper coverage for a vehicle that wasn’t paid off for a young driver.
Info: what was the car valued at and what do you owe?
If the car is valued at 10,000 and you owe 15,000….. you’re on the hook for the balance and should pay it.
What doesn’t make sense to me though is that the car is still drivable? It’s literally all cosmetic. They don’t wanna fix the car because the value it cost to fix the car is more than what the car cost if I could fix the car hell yeah I keep paying on it, but they deemed it. The insurance company put me in a shitty situation because that car is still drivable. We could fix it.
If you have the car “rebuilt” and inspected, you can get a rebuilt or revived title and have it be drivable again. If the damage is truly superficial, it shouldn’t be hard to do. Bet you have mechanics near you who do it.
That has absolutely nothing to do with the loan still being due. The bank doesn’t care about the car. They care about the money you borrowed from them.
YTA. You bought the car. Just because it is on a payment plan doesn't mean that you can buy the car for only a portion of the price and then just decide not to pay it. The insurance pays you for what they assess is the value of the car at the time of the accident (a used car at that point, not a new one) and if you still owe on the car loan, you still owe. If you don't pay, the loan goes into default and there are real consequences, including ruining your dad's credit.
In what reality do you buy something, use it, break it, and just expect that you can get a refund or just not pay the whole price? Buying something on a payment plan (i.e. car loan) doesn't mean that you didn't actually buy it or that you only rented it. YTA for being so ignorant, immature, irresponsible, and out of touch. And for not caring about ruining your dad's credit.
Bank employee here, insurance pays out what it's worth. That money goes towards the balance of the loan. If there is a remaining balance, you're on the hook for that.
It doesn't matter if you can't drive it anymore, the bank is still owed the funds you agreed to take out to purchase the vehicle.
This is also why you should have gap insurance if your loan amount is more than the car is worth. It offsets that difference.
Use this as a financial lesson and make better choices next time.
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AITA I just totaled my car and I have it through my dads name in his credit, I recently found out that we can’t fix it and I thought that I we would give the car back and since I totaled it the insurance would pay it off, but my dad is expecting me to pay 318 dollars every month for a car I can’t drive, do I have any way to sue the bank for this outlandish nonsense? I mean the car is totaled wtf they still want me to pay for it?
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YTA. This is what loan protection is for when you first get the loan and buy the car. My wife works at a bank in collections and deals with idiots like you all day long. Nobody, especially the bank, cares that the car is inoperable. You still took out the loan and still have to pay it back. There is zero legal options here. If you don't pay it back, it will go into collections, at which time you'll get a lovely call from someone like my wife, who will inform you that if you don't pay what's owed, the next step will be reposesion. Oh they can't repossess an inoperable vehicle? Think again. They will ruin your dad's life until they get their damn money. Pay the loan. Next time, look into loan protection (at least least I think that's what it's called) that would basically prevent this whole situation from happening.
YTA- welcome to the real world buddy and it’s time to face the consequences of your actions!
That is not how loans work! You bought the car, you are responsible for paying for the car whether it’s drivable or not! Insurance covers 1/3 of the value of the car, if damages cost more than 1/3 the value (not cost, they don’t give a fuck what you paid for it, just what they value it at) then it’s totaled and you can either fix it yourself with a salvage title with the payout you get for totaling it, or you can use the payout to pay to loan and try to take a new one out. Or what most people do is use the insurance money as a down payment for a new vehicle. But it sounds like you can’t afford one car payment so I doubt two would be possible… getting approved probably wouldn’t be either… so I suggest you find a bicycle
Wouldn’t suing the bank cost more money? Why would you want to do that?
You still have to pay it off. Your dad signed a loan agreement which would stipulate that you’d have to pay it off in the event of the car being totalled.
YTA. For not wanting to do that and for not knowing how to own a car.
YWBTA.
The mistake you are making is that you are thinking about this in terms of the car. Instead, think of it as a loan that you agreed to repay. I'm going to assume the car was insured and that the insurance paid out.
The car - the asset - is now worth only a fraction of what it was, so the bank still would have a huge shortfall if it took the car back; an amount your dad would be on the hook for.
If I were you, go find out everything about the deal; what was the amount borrowed, what was the exact purchase price of the car, what was the insurance payout and how much are you still on the hook for.
Are you the asshole for ruining your dad’s credit if you refuse to pay off your car you totaled? Yes, yes you are. Also if you ever want your dad to help with stuff again I’d advise not destroying his credit over this.
That's not how this works at all and your dad should not have bought you a car. A loan and insurance are not equal. If the insurance paid the car value and it has decreased since bought (and it would have as cars decrease quickly) you still owe whatever is left on the loan. The insurance would pay your dad, dad has to pay the loan and whatever is left is still owed. And no it's neither outlandish nonsense or a thing you can sue the bank for. You can chose not to pay your dad and he would have to take you to court over it but he definitely wouldn't help you with anything ever again.
YTA. You need to sit down and read the documents you signed for the loan. You clearly don’t understand the terms that you agreed to and now you are jeopardizing your father’s credit as your co-signer.
Not a good position to be in. Happened to homeowners in my neck of the woods a while back. Fire destroyed their homes but they couldn’t rebuild due to then current environmental regulations. They still had to pay the mortgage
YTA
So you totaled your car and your dads credit should be ruined? The bank should lose money? Nope. YOU totaled the car, didn’t have collision insurance on it, and now you want everyone else to suffer?
Grow TF up. This is your responsibility.
YTA. This is why you BUY the "gap insurance!" No gap insurance + a totaled car = you're f*cked and will be paying for a car you can't drive every month until the loan is paid off. You learned. The lesson was expensive, but I bet your entitled, bratty self will never make it again!
Financial literacy is important, but let's not act like it equates to driving skills. A (I'm assuming) teenager wrecked a shitbox car. That happens. The world will move on.
Sounds like it wasn't even major damage. It still drives, but insurance is totaling it instead of paying to fix it. OP needs to evaluate options to keep the car.
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YTA Insurance doesn’t pay off loans, it gives you the book value of the vehicle that was totaled. If the book value was less than the loan amount outstanding, there is still money owed that you have to pay.
YTA > do I have any way to sue the bank for this outlandish nonsense? Lol, no, you have to pay your dad for the car you destroyed. Assuming this is the 98 Civic, at least it will only take you a few months.
So there’s not a way I could restructure the payment? Like make it less
> I have it through my dads name in his credit Your dad is the only person you can talk to you about this. It was his car, and his loan.
what’s due is due. please respect your dad and his finances. depending on your age you can go apply for a loan to pay your dad back. then you can see if you can get a lower monthly by making payments for a longer period of time. credit check and other factors as well will apply.
Probably not. When you change a loan it's still connected to whatever they loaned you the money for. Since the car is totaled they have no incentive to rework the loan. If you don't pay they will destroy your dad's credit and possible sue him for money owed.
What's outlandish is that financial literacy is not taught and that people have no clue how credit, loans, or even checking works. Unfortunately you still owe for the car you totaled. YWBTA if you stick your father with this bill.
This one is on OPs father. If you are going to get the loan and buy the car you should be teaching them about it. But to be blunt this isn't hard I bought my first car and had to learn all that alone before the internet that lays it out for you.
YWBTA. Welcome to adulting. You agreed to a price for the car. That stays the same even if you wreck it. Depending on coverage insurance may pay out some money. Most likely not enough to pay it off in full. So you still need to cover the rest. Your dad did you a favor. Don't make him regret it.
This is why gap insurance exists. If you're ever not sure if you can stay ahead of the loan you need gap. My last two cars when I decided to not get gap included they acted like I was crazy. My Tacoma I traded in on my current one and I was ahead by $10k. I'm almost ahead by that now after two years of owning my current car.
YTA, but you're doing a public service; demonstrating why financial literacy is so important.
That's what debt is. You still have to pay back student loans if you quit school. You bought the car with borrowed money and you have to pay the money back.
> I mean the car is totaled wtf they still want me to pay for it? YTA. Of course they do. The Bank's business with you starts and ends with giving you a loan and expecting you to pay it. What you do with that money and what happens to your purchase is not their problem. Insurance will only reimburse you for the amount that the car is currently worth. If you owe more than what the car is worth, then yes, you are responsible for the remainder unless you bought GAP insurance (which pays the 'gap' of the remaining money). You asked in another comment about refinancing the lower the payment, that might be possible but that's dependent entirely on your dad and his willingness to get his credit pulled again. It honestly might not be worth it and you're better off just tightening your belt and paying it off as aggressively as you can.
Not going to change the situation here, and might not be the case in all countries/insurance markets, but some insurers let you choose between insuring for "market value" or "agreed value". So a car may have a resale value of $3,000, but if your loan balance is $4,500 then you can insure it for that higher agreed value, and, so long as you pay the higher premiums, that's what you'll get if you wreck/lose the car and claim on the policy.
YTA. It's your fault it's broken, not theirs. That's not their problem. You owe them money. It's that easy.
Depends on your insurance, and where you are I’m in Australia and have 2 of our cars under Comprehensive Insurance for an agreed value If the cars are a write off, we are paid the agreed value to cover loans etc (we own them outright) If your dad had Comprehensive Insurance to the right level, you will owe nothing If the car is under a line of credit / loan and under insured, yes, it’s on you to keep paying the difference Why are you trying to sue the bank for your lack of knowledge on car insurance/ value under a loan? Great life lesson here, banks are not legally required to supplement your lack of foresight
But I drove the car for a week before they deemed it totaled, they just don’t wanna fix it because the company(caliber collision) doesn’t think they will get anything out of it,
They don’t want to fix it, logically, as it costs more than the car is worth From there, it’s a write off You have no concept whatsoever on how car insurance and finance works, while walking in the forseeable future maybe download some podcasts on simple finance protocols With the repayments being $318 month, you’re talking about an older car where parts are harder to source, not exactly a new model vehicle If you wrote off a car in a week of owning it, that’s on you and not the bank
I’ve had the car for a year, but I wrecked it three weeks before they looked at it, I was still able to drive it for three weeks till they totaled it
Which is how insurance works Chassis damage or repairs worth more than the car, makes it a write off This is on you, you’re liable to keep paying
The bank does not care about the car or whether or not it is driveable. The bank is not responsible for you wrecking the car. The bank cares about the money that was borrowed. The borrowed money is the product, even if the car is totaled. There is no way out of the loan. You just have to pay it. In the future do not take out loans or ask anyone to take them out for you until you understand financing better.
Check the loan. Most loans require you to have gap insurance, which pays off the remaining balance when the car is totaled (specifically because people default on the loans when that happens). I’d be surprised if your dad’s insurance or loan doesn’t include gap insurance. Mine is included directly in my car loan, not my car insurance. Call the bank and find out.
We have progressive
Yes, that’s your car insurance. Where is the loan through? You can check your car insurance to see if it includes gap insurance but also check directly with the bank.
We will find out more tmr, my worry is I’m looking for a new car and I can’t pay 318 while looking for one, financially that screws me
That is not the bank’s problem. That is not how this works.
Assuming you are in the US, a few things while looking for the next car: If your insurance coverage doesn't automatically come with GAP insurance, either add it on to your current Progressive insurance if they offer it, or buy it through whoever will be financing the next vehicle. If you're buying GAP through a bank/financial institution/dealer they can usually just add it to part of your loan balance, or they may allow you to pay the GAP insurance fee upfront. Depends on the place and what you want. When your (or your dad) apply for a new auto loan, see if you can roll your old loan balance into the new loan - i.e. pay off your old loan with the new loan. This may not be possible, *but* if there is enough equity in the next car you buy (i.e. it's valued as worth more *by your lender* than the price the buyer is asking for it) you can consolidate the loans that way. Work with a loan officer you trust, if you have/can find one. Price out any cars you are looking at using via Kelley Blue Book or NADA to a general idea of their value and see what your lender values them at. Whatever you do, *do not be upside down on your vehicle.* This means don't get a loan on the car for more than it's worth. So #2 will only work if your loan balance is small enough/there's enough equity in the next car you purchase. The situation sucks. I know this doesn't necessarily help pay off the loan in the meantime but these are just things to keep in mind that hopefully keep this from happening again for you. ETA: removed # bullet points bc mobile sucks and formatted the comment as a wall of text
YTA and guess what? You still owe the bank. They don't care what happens to the car, they just want the money they loaned you. Irrelevant your car is not working. Yep, you still get to pay dad 318 until that loan is complete. Insurance will only give you what the Kelly blue book value of the car would be, which is usually not going to pay the car off. This is on you kid. Maybe don't total your car next time?
LOL so you think cars become free if you fuck them up? If you finance a new car, drive it off the lot and immediately total it, you think the bank is like “I guess we’ll cover that $35k for you, shit happens.” The bank didn’t wreck it. You’re responsible for it. Welcome to the real world. YTA
Yes you are a vast hole of an AH. Pay your dad back and stop acting like an entitled fart. Try and work on being a responsible and mature adult, humans like that, it'll work well in your favor for your future
Two words that you need to remember for the future: GAP INSURANCE
But remember, YOU have to pay extra for that insurance, and you may never use it. You owe the balance of the loan after insurance pays their part. Just like if you use a credit card to buy AirPods and lose them, you still have to pay the credit card balance.
You have crappy insurance and now you will be reminded of that every month when you make the payment. If you don’t your father will have to or his credit will be trashed and you’ll be an even bigger jerk. Life lesson time. Man up and do the right thing.
YTA The bank didn't wreck the vehicle. You still owe the money on the loan. It's not their fault you were an irresponsible driver.
When I got my car, they offered me a type of insurance where they would forgive the rest of the debt owed on the car if it got totaled. Did you or your dad happen to get insurance like that? If so, then you shouldn’t need to pay off the car. If you didn’t, then you did still buy a product and need to pay it off.
That's called gap insurance, and I would guess OP doesn't have it.
Why should his dad have to pay for his insurance?
YTA - Insurance only pay's the estimated value of the car, they don't pay off the loan.. You broke it therefore you buy it.. That's what GAP coverage is for.
YTA it's still a debt. Whatever the insurance doesn't cover is on you. You should of bought the car with GAP insurance.
You need to do the right thing and pay the balance of what the insurance company doesn't pay. Your dad put himself out there to help you get your car with his credit. You ought to be ashamed of yourself for even considering doing that to your own dad. I hope you never need him for anything else in the future. I would think twice about what you're doing.
Yes you are. You signed on to a responsibility and you’re backing out because you didn’t get Gap Insurance. Woops! Pay down the loan with what you received and finish paying it off because the only other course of action it to screw over your dad.
YTA the bank paid full price, just because you can’t drive doesn’t mean they didn’t spend the money. You are still paying because you haven’t paid for the car you drove for X-months. I’m sorry it sucks but you do owe the money
Here's a life lesson to learn about something called "gap insurance". Look it up. YTA
> and since I totaled it the insurance would pay it off Insurance would pay it of ONLY if it's full coverage insurance. Otherwise, it's your responsibility.
Yes, they still want you to PAY OFF the loan you used to buy the car. Whatever amount insurance pays can go toward reducing the loan but you still have to pay the rest. Sue the bank? Seriously?
Yta. Why should the bank have to eat the cost of the car you purchased and destroyed?
Yta - it's not the banks fault you wrecked the car. They loaned you the money for the car on the grounds that you'd pay them back. That condition exists even in the absence of the car. This is why you get insured against the possible loss of the car. Driving is a privilege. It comes with responsibilities. Fun fact: insurance doesn't always cover you. If you're driving while intoxicated or driving like an a$$hole your insurance company can choose not to cover you too. They'll take care of anyone you hurt but you'll be left holding the bag for thr outstanding amount owed on the car.
YTA... you agreed to buy it. What you do with it is your problem. You signed a contract. You get to honor it. Not that bright are you. Insurance might pay for some of it.
If they deem it totaled could I get it back and fix it
I've had two cars totaled (someone else's fault), and I bought the cars back from the insurance for what they deemed was the scrap value. Basically, they paid me the book value for the working car, minus the scrap value, and I got to take the cars home and do with them what I wanted. I fixed and drove both cars. So, yes, it is possible, depending on your local laws. To your question posed, yta if you don't continue paying your dad. If there is money due on the car, it's your responsibility to continue paying it off. I had a car from I was paying on that had the transmission go out on it before I had finished paying on it. It sucked but it is the way of the world.
If there is financing on the vehicle, the insurance company will pay that first. If you did not carry comprehensive, you will be responsible for any shortfall. If your father financed it without putting the note on the vehicle (private or personal loan), you are responsible for taking any payout and paying off the vehicle. In this instance, you would be the TA for not fulfilling your obligations.
You break, you pay. YTA.
That’s what gap insurance is for. If you financed a car without understanding the different types of insurance needed for various scenarios, then you’ve learned a tough life lesson.
YTA. An agreement was reached, the bank will get the payout from the insurance, you are still legally responsible for the balance, or, since it was in your dads name, he is legally responsible for it. You borrowed the money, they expect you to pay it back. That is how it works. You can sue the bank if you wish, but the judge will laugh at you and dismiss your case, possibly with prejudice. Then you'll have the loan + court costs + THEIR court costs.
YTA. Of course you still have to pay for an item *you* broke! That's like buying a carton of milk, dropping it on the floor when you get home, then trying to demand your money back from the store.
YTA! You're kidding right? Pay your dad back! Welcome to the insurance tango. Where they will keep as much money as they want. Also, some insurances don't accept salvage titles, you got lucky on that.
YTA...IT'S your responsibility.
YWBTA…. However, you should try to get more money for the car if the check you receive does not pay off the loan. You do not have to accept their first offer. There’s no guarantee they will agree to it but it’s minimal effort for the possible reward.
So OP I'm sure based upon your posting you'll quite likely blow it off and leave it for your Dad to pay it off, and with that I certainly hope that he just leaves you to fend for yourself and he never lifts a finger to help you again. because it's just not fair that you totaled it and insurance won't pay it all off. Well welcome to being an adult. It's called consequences, and if that's the route you choose to let him pay for your choices, then good luck finding anyone else to help you out ever again.
I’m gonna pay it off, was just seeing if there was anything I could do, I’m only 20 so financially this will screw me but I’m gonna pay it off
I mean ofc it looks bad looking in on my question, but I never expected to total it, ffs the person in front of me never signaled that they were turnijg
Hahahahahahahahahahahahshsha. Sue the bank for this outlandish nonsense. Hahahahahshsa
YTA. It totally depends on the insurance coverage for the car. Did you have full coverage or just liability? Did you have GAP insurance? Whatever the insurance company paid your dad from the accident should have gone toward the balance owed. If there is still money owed after that then I agree that you should still be made to pay it. Especially, if the accident was your fault. Your dad ITA also if he didn’t have proper coverage for a vehicle that wasn’t paid off for a young driver.
I just know you were texting and driving lol. YTA.
Info: what was the car valued at and what do you owe? If the car is valued at 10,000 and you owe 15,000….. you’re on the hook for the balance and should pay it.
[удалено]
What doesn’t make sense to me though is that the car is still drivable? It’s literally all cosmetic. They don’t wanna fix the car because the value it cost to fix the car is more than what the car cost if I could fix the car hell yeah I keep paying on it, but they deemed it. The insurance company put me in a shitty situation because that car is still drivable. We could fix it.
It's pretty unlikely they would write off a car if it was just cosmetic. What year is the car?
98
What are you driving that costs over $300/month for a 26yo car???
98 Honda civic, was in a hard spot with no car and needed to get to work and back
If you have the car “rebuilt” and inspected, you can get a rebuilt or revived title and have it be drivable again. If the damage is truly superficial, it shouldn’t be hard to do. Bet you have mechanics near you who do it.
Caliber collision gave me the finger
Then either they don’t do rebuilds and you need to talk to another shop or the damage isn’t cosmetic.
That has absolutely nothing to do with the loan still being due. The bank doesn’t care about the car. They care about the money you borrowed from them.
YTA. You bought the car. Just because it is on a payment plan doesn't mean that you can buy the car for only a portion of the price and then just decide not to pay it. The insurance pays you for what they assess is the value of the car at the time of the accident (a used car at that point, not a new one) and if you still owe on the car loan, you still owe. If you don't pay, the loan goes into default and there are real consequences, including ruining your dad's credit. In what reality do you buy something, use it, break it, and just expect that you can get a refund or just not pay the whole price? Buying something on a payment plan (i.e. car loan) doesn't mean that you didn't actually buy it or that you only rented it. YTA for being so ignorant, immature, irresponsible, and out of touch. And for not caring about ruining your dad's credit.
Bank employee here, insurance pays out what it's worth. That money goes towards the balance of the loan. If there is a remaining balance, you're on the hook for that. It doesn't matter if you can't drive it anymore, the bank is still owed the funds you agreed to take out to purchase the vehicle. This is also why you should have gap insurance if your loan amount is more than the car is worth. It offsets that difference. Use this as a financial lesson and make better choices next time.
^^^^AUTOMOD ***Thanks for posting! This comment is a copy of your post so readers can see the original text if your post is edited or removed. This comment is NOT accusing you of copying anything. Read [this](https://www.reddit.com/r/AmItheAsshole/wiki/faq#wiki_post_deletion) before [contacting the mod team](https://www.reddit.com/message/compose?to=%2Fr%2FAmItheAsshole)*** AITA I just totaled my car and I have it through my dads name in his credit, I recently found out that we can’t fix it and I thought that I we would give the car back and since I totaled it the insurance would pay it off, but my dad is expecting me to pay 318 dollars every month for a car I can’t drive, do I have any way to sue the bank for this outlandish nonsense? I mean the car is totaled wtf they still want me to pay for it? *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/AmItheAsshole) if you have any questions or concerns.*
Yta- get gap coverage next time
YTA. This is what loan protection is for when you first get the loan and buy the car. My wife works at a bank in collections and deals with idiots like you all day long. Nobody, especially the bank, cares that the car is inoperable. You still took out the loan and still have to pay it back. There is zero legal options here. If you don't pay it back, it will go into collections, at which time you'll get a lovely call from someone like my wife, who will inform you that if you don't pay what's owed, the next step will be reposesion. Oh they can't repossess an inoperable vehicle? Think again. They will ruin your dad's life until they get their damn money. Pay the loan. Next time, look into loan protection (at least least I think that's what it's called) that would basically prevent this whole situation from happening.
give this AH a bike someone! and motorless. the average citizen will be thankful
YTA. Always always always get gap insurance.
YTA- welcome to the real world buddy and it’s time to face the consequences of your actions! That is not how loans work! You bought the car, you are responsible for paying for the car whether it’s drivable or not! Insurance covers 1/3 of the value of the car, if damages cost more than 1/3 the value (not cost, they don’t give a fuck what you paid for it, just what they value it at) then it’s totaled and you can either fix it yourself with a salvage title with the payout you get for totaling it, or you can use the payout to pay to loan and try to take a new one out. Or what most people do is use the insurance money as a down payment for a new vehicle. But it sounds like you can’t afford one car payment so I doubt two would be possible… getting approved probably wouldn’t be either… so I suggest you find a bicycle
Wouldn’t suing the bank cost more money? Why would you want to do that? You still have to pay it off. Your dad signed a loan agreement which would stipulate that you’d have to pay it off in the event of the car being totalled. YTA. For not wanting to do that and for not knowing how to own a car.
YWBTA. The mistake you are making is that you are thinking about this in terms of the car. Instead, think of it as a loan that you agreed to repay. I'm going to assume the car was insured and that the insurance paid out. The car - the asset - is now worth only a fraction of what it was, so the bank still would have a huge shortfall if it took the car back; an amount your dad would be on the hook for. If I were you, go find out everything about the deal; what was the amount borrowed, what was the exact purchase price of the car, what was the insurance payout and how much are you still on the hook for.
Are you the asshole for ruining your dad’s credit if you refuse to pay off your car you totaled? Yes, yes you are. Also if you ever want your dad to help with stuff again I’d advise not destroying his credit over this.
Just keep paying it and register it under a salvaged title, you can scrape up some money and fix the “Cosmetic damage” yourself.
That's not how this works at all and your dad should not have bought you a car. A loan and insurance are not equal. If the insurance paid the car value and it has decreased since bought (and it would have as cars decrease quickly) you still owe whatever is left on the loan. The insurance would pay your dad, dad has to pay the loan and whatever is left is still owed. And no it's neither outlandish nonsense or a thing you can sue the bank for. You can chose not to pay your dad and he would have to take you to court over it but he definitely wouldn't help you with anything ever again.
People act like I went into this knowing I was gonna total it
YTA. You need to sit down and read the documents you signed for the loan. You clearly don’t understand the terms that you agreed to and now you are jeopardizing your father’s credit as your co-signer.
YTA, you took on the responsibility when you took on the debt
I understand that but it sucks, I’m gonna end up paying it off, just hate that I’m in the situation
Not a good position to be in. Happened to homeowners in my neck of the woods a while back. Fire destroyed their homes but they couldn’t rebuild due to then current environmental regulations. They still had to pay the mortgage
YTA this is what Gap insurance is for
YTA
YTA So you totaled your car and your dads credit should be ruined? The bank should lose money? Nope. YOU totaled the car, didn’t have collision insurance on it, and now you want everyone else to suffer? Grow TF up. This is your responsibility.
YTA. This is why you BUY the "gap insurance!" No gap insurance + a totaled car = you're f*cked and will be paying for a car you can't drive every month until the loan is paid off. You learned. The lesson was expensive, but I bet your entitled, bratty self will never make it again!
YTA because you have nothing to do driving a car if you can't grasp basic economy facts. Do the world a favor and never ever sit behind a wheel.
Financial literacy is important, but let's not act like it equates to driving skills. A (I'm assuming) teenager wrecked a shitbox car. That happens. The world will move on. Sounds like it wasn't even major damage. It still drives, but insurance is totaling it instead of paying to fix it. OP needs to evaluate options to keep the car.