How bad did I mess up? I helped out a friend in need and gave her a car. But, I since she had no job?

or money, I kept the insurance in my name. We signed a letter stating that i was giving her the car as a gift but the reg and insurance would stay in my name until the end of the month, and until that time the car would stay in the state and i would still be financially responsible for it..but that after that date, she would be.
Well, in the meantime, she was in an accident and totalled the car. The other driver had no insurance and she was not at fault. Now, she wants the settlement money to get a new car. Also, she says that i broke the law by giving the car and aggreeing to carry the insurance for another month. Also, the insurance company has no idea about the gift aggreement. We told them that she was borrowing it. However, my "friend" is now talking about suing. And I have no money for a lawer.

How bad did i break the law? And should i pony up and tell the insurance company it the car was a gift to her and just deal with what happens? Can I get in trouble?

mY FIRST QUESTION IS WHAT RIGHT do you habe to extend your insurance coverage to an other.

As far as I uderstand the situation you don't work or represent the insurance company, as such your extention of the coverage to her is not legal or binding.

You didn't mess up. The "contract" is not legally binding. As long as the car is still registered in your name, YOU are the owner. Be thankful you were still paying the insurance. Your insurance rates will not go up due to the wreck not being your fault. If your friend was injured in the wreck she has a injury claim against your insurance IF you carried full coverage on your policy which includes Uninsured motorist, which also will not affect your rates. I would tell your friend that the first "contract" did not work out and she did not hold up her end of the bargain, the car was still in your name and you are the rightful owner of the settlement for the vehicle.

If she was driving the car regularly and you were not, and she was not listed as a driver, you violated the insurance contract, so they could refuse to pay. As the title remained in your name, she had no insurable interest. Unless your state law requires that you list all drivers on your insurance policy, you did not violate the law, but that may be of little worth if the insurer refuses to pay. The fact that she was not at fault means little in this context.

I doubt she will sue you, but she might report the facts to the insurer, which will want its money back if you have already been paid. And what did you do with all that money if you can't afford a lawyer?

You did not break the law. And she has no right to the settlement money because you were the one paying for the insurance.

It sounds like she is no friend and was merely using you.

You didn't do anything wrong. Tell your friend to kiss your a $$ and get out of your life.

If the car was still in your name, you have a right to protect your property. She's not entitled to the money if the car was still your property, if it's her property, you shouldn't have insured it and the insurance company will not pay at all.

as long as the title is still in your name then it is still your car. Insureneces will cover the Occasional driver so theres no issue about the coverage. Till you sign over the title she was "test driving".

even thou you may not have money for a lawyer,,SOME lawyers will give you free advice over the phone..

If YOU give her a law suit back, she will freak out because SHE will not have money to get a lawyer..she is desperate for quick cash, and she knows she don't have a claim against you..DONT let her bully you around..

If you serve her with papers she will drop like a rock in a bucket of water.

First, she does not sound like a very good friend.

Second, the insurance settlement money is yours, you were paying for the insurance and your rates will now go up because of her accident.

Third, why did you sign a letter like that. It sounds to me like she is a scheemer, and perhaps this was a pre-planned scam her and the other driver thought up.

I would tell her to go ahead and sue, since she is claiming the car was hers, and she did not carry insurance on it, she would be entitled to zero money for the settlement.