This is a little long winded and let me say I'm sorry ahead of time...

In July of 2007 my Step Mother asked me if I would give my 2001 Chevy Blazer to my little sister and then take over her 2001 Mitsubishi Montero payments. The agreement was that I would make the payments and once the Montero was payed off the car would be mine free and clear. I asked if she needed any compensation for the $15,000.00 that she had originally put down on the car and she denied compensation.

My little sister did not like the 2001 Chevy Blazer and my parents sold it for $4,500.00.

I have made the loan payments on the Montero for the past 31 months, all insurance, registration, maintance, gas, etc... To the tune of $20,000+...

I was in a major car accident on the freeway on 01/19/2010 and the car was totaled. I was lucky that I was the only car involved and that my injuries were minor.

When the insurance company was contacted (My parents and I are all on the same policy) they told them that the pay out for the total loss of the car was going to be $9,319.33. The remaining cost of the car loan was $3,472.87. Minus my $500.00 deductable the pay out ended up being $5,346.46.

My Step Mother now states that our agreement is null and void because I didn't finish paying off the car, the insurance payed off the loan.

My parents are stating that they are not going to give me any of the extra money that came because of my wreck.

I have medical bills, rental car fees, insurance costs, lost wages from 5 days I had to be off of work for my back. Not to mention I'm car-less.

Is it legal for them to be making money off of my accident?

I am a 26 y/o Paramedic in the Bay Area. I can make ends meet but I though my parents were doing something out of the kindness of their hearts.

Aren't verbal contracts legally binding?

Thank you for your time...

JB