Normally, after you leave the scene of an accident and get to a safe location, you would call your insurance company, but since you do not have insurance, you are simply forced to wait and figure out how you will pay for your car repairs and medical bills.
The other driver will file a claim with his or her insurance company. Since you don’t have insurance, the claim will be processed under the driver’s uninsured and underinsured motorists’ coverage.
However, this does not absolve you of financial responsibility.
Once the insurance company determines the other driver’s injuries and the necessary repairs to his or her vehicle, the insurance company can sue you for that amount.
This means that you will have to go to court or agree to a settlement. In both instances, you can probably work out a payment plan with the insurance company in order to pay off the accident-related debt.
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What to Do if You Don’t Have a Current Insurance Policy
If you do not have a current insurance policy it is in your best interest to locate a new policy and purchase it before you drive again.
Thankfully, this can be accomplished quickly with the use of an auto insurance comparison tool.
Once you enter your information, the program will find all the available policies for you so that you can quickly buy an auto insurance policy.
Avoid the risk of totaling your car without insurance and get free quotes from multiple insurers by entering your ZIP code below.
Frequently Asked Questions
We’ve got a few more FAQs below. Read on for more about what to do if your car is totaled.
#1 – Do you still have to make payments on a totaled car?
If you are financing a car after a total loss, you should continue to make payments until told otherwise, otherwise, these missed payments may impact your credit score negatively.
#2 – What do you do if your loan outlasts your vehicle?
What do you do when your car dies and you still owe money on it? Sometimes, your car may not last the whole term of the loan. If that’s the case, you have a few options.
You can pay off the loan before purchasing a new vehicle. If you don’t have that sort of money lying around, you might be able to roll the remainder into a new loan for another vehicle. You might also be able to turn in the tags and store the car until it’s paid off, but that assumes you can afford to keep paying these payments and get another vehicle to drive.
#3 – Do you still have to pay insurance if your car is totaled?
Once your vehicle is totaled, you probably will not be required to pay your auto insurance since the car is no longer driveable. But always communicate with your insurer to make sure that this is the right action.
If you do end up with a lapse in coverage, your insurance will go up. The table below shows how auto insurance rates increase after a lapse in coverage.
|Companies||Rates with No Coverage Lapse||Rate After Coverage Lapes||Rate Increase|
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As long as you keep in touch with your insurer, it shouldn’t become an issue.
#4 – Can you refinance a totaled car?
Most lenders probably won’t allow you to refinance a totaled car. And if you refinance your auto loan and then total your vehicle, you may have to pay extra. That’s because some loans come with a prepayment penalty, and you’ll have to pay extra to get out of the loan if your car is stolen or totaled.