New Car Buyer (i dont know that collision coverage is must)?

hi i was a new car buyer. i dont know much about the rules here in USA. I took a brand new toyota corolla with bank loan of 20k. They gave me the car without taking any insurance at the time of purchase
and asked me to send the insurance document later.i send them full coverage insurance document after that but i dont know that collision coverage is must to carry when i have loan.Later i removed collision coverage online in geico after i removed collision i met with an accident and my car was totalled. Now i have lot of money on it. Even though it is not fault but the other driving also telling its not his fault will the other guys insurance pays me ..i am so worried how to settle this Loan please anyone give me suggestion to recover from this ..
Additional Details
i got the police report it was saying case of confusion and cant determine whoz fault. The other party insurance company is still investigating.

dieterzakas

I had some difficulty understanding what you're trying to say owing to your limited grasp of the English language.

However, I want to make sure I understand certain details.

You took out a $20,000 loan to buy a car. When you signed the loan agreement, you agreed to keep "full coverage" insurance (liability, comprehensive and collision) on the car, because the lender has what's called an "interest" in the car as the lienholder.

When you cancelled the collision coverage on your car, you actually violated the terms of your contract. Whenever a vehicle is leased or financed, the buyer is REQUIRED to maintain the specified insurance coverages for the duration of the loan. Only when you've made the last payment will you own every nut, bolt and washer on the car. At that point, then, you will be able to cancel the other coverages, leaving only the liability. It was EXTREMELY irresponsible of you to drop the collision coverage.

Ordinarily, when a financed automobile is totaled, the insurance company will pay off the remaining balance of the loan, thus ending your obligation to the lender. If there is a difference between the balance of the loan and the value of the vehicle, then something called "gap insurance" is used to cover the difference.

I don't know how things will play out; you may still be liable for the loan. Have you contacted your insurance company to answer your questions?

ravenjudge

get a police report. call both insurance companies, or yours at least. really I think the dealership should have told you what's needed, but they are under no real obligation-unless you have a loan on the car....so the loan company would get the notice that it was removed-and usually contact the buyer-if your address is correct.

Claims adjuster

YOU are out of luck..Insurance companies have to believe their policy holders UNLESS physical evidence proves other wise...both statements are he said she said and in your case the police report says the same thing...ARE there any witnesses who can state otherwise for the accident, do the damages support one statement of the other...Do you have the money for an attorney or independent adjuster? They may be able to present your claim on your behalf but without collision your insurance company would have no financial responsibility to you for your car loan, you may THIS IS A LONG SHOT..request who authorized the collision coverage to be dropped..USUALLY something of that caliber will need to be signed and confirmed...

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