Reader’s Question:

I have had my 2004 vehicle for ten months and I crashed it into a tree. I had let my car insurance lapse two months ago so I did not have car insurance coverage. I was hospitalized for several weeks. Should I inform my finance company in Des Moines, IA? What will happen then? Are they going to sue me?

Gene

Des Moines, IA

Your lien holder in Des Moines, Iowa requires that you carry physical damage coverage to your automobile to ensure that any damages to your car will be repaired. Since you did not have auto insurance coverage, you will ultimately be held liable for repairing your car as well as being responsible for any other damage you caused. Some lien holder’s force place insurance coverage on the car when they are informed that you do not have your own car insurance policy. If so, your car may be covered for this loss.

I am unable to offer any legal advice regarding your car insurance policy. So, you may want to consult a lawyer to know your rights as well as your legal obligations.