What happens if you total your car with no insurance? (2025)

What happens if you total a car without insurance? If you cause an accident, your collision insurance will pay for repairs to your car. It’ll also pay for your car’s actual cash value if it is declared a total loss. Read more to find out exactly what collision insurance is and what it covers.

However, what happens if you total your car without insurance? If your car is totaled with no insurance, you’ll have to pay for car repairs by yourself.

Read on to see what to do if you total your car without insurance, what to do with a totaled car without insurance, and what to do with a totaled financed car without insurance.

If you’re thinking to yourself, “My car is totaled and I have no insurance,” it might be a good time to get covered. Enter your ZIP code above to compare rates from top providers to avoid a totaled car with no insurance.

 

What to Do if Your Car Is Totaled Without Insurance

What happens if I total my car without insurance? If you’re wondering, “I totaled my car without insurance. What do I do?” the answer is you don’t have many options. Unfortunately, your car insurance will not pay for damage to your vehicle after an accident if you don’t have collision coverage.

Collision insurance pays for repairs to your car after you’ve been in an accident, no matter who was at fault. It also covers you if you hit a stationary object, like a tree. If you don’t have collision coverage, you’ll have to pay for car repairs after an at-fault accident by yourself.

However, if you get into an accident for which you are not at fault, your car repairs should be handled by the responsible driver’s liability insurance. If you’re hit by someone without insurance or you’re the victim of a hit-and-run, your car repairs will be covered by uninsured motorist insurance if you have it.

Since collision insurance isn’t required in any state, many drivers who don’t have a car loan or lease skip buying it. However, collision insurance offers valuable protection in case you’re ever in an accident. Adding collision insurance to your policy is a good idea if you can’t afford to replace your car.

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How Insurance Companies Decide When a Car Is Totaled

After an accident, your insurance appraiser will evaluate the damage done before the insurance company decides to total the car involved. Insurance companies consider a car totaled when it costs more to repair than its actual cash value (ACV). Companies use different thresholds, but most will total a car when the damage reaches 75% to 90% of its ACV.

Your insurance company must also work with state laws before totaling a car. 

Totaled cars lose their clean title and are issued a salvage title. But,  what is a salvage title? Vehicles with a salvage title can’t be legally driven on a public road until it’s repaired and passes a state inspection. If you choose to repair a totaled car, it will be issued a rebuilt title once the state deems it safe to drive.

However, if you’re thinking, “My car is totaled and I don’t have insurance?” you won’t get an appraisal from an insurance company.

How Gap Coverage Works if You Totaled a Car Without Insurance

What happens if you wreck a financed car without insurance? It’s never fun when a car is totaled with no insurance, but it’s especially painful when your totaled leased car has no insurance. 

Not only do you lose your new car, but you might have to keep paying for a vehicle you no longer own.

When you have a loan on your car, your car’s ACV will likely be less than what you owe for the first few years. Owing more on your loan than your vehicle is worth is called an underwater or upside-down loan. If you total your car while your loan is upside down, your insurance won’t pay enough to pay it off.

What is GAP insurance? GAP Insurance protects against this situation by paying the difference between your car’s ACV and what you owe on your loan. For example, if you have $30,000 left to pay on your loan but your car is only worth $25,000, GAP insurance pays the $5,000 difference.

You’ll only need GAP insurance for a limited time — once you pay your loan down and it matches your car’s ACV, you can cancel your coverage. If you’re interested in GAP insurance, you might need to search for it — not every company offers it.

Now, we’ll explain what to do if your car is totaled with no insurance but you have gap coverage.

How to Use Gap if You Have No Collision Insurance But Car Totaled

However, you might be wondering, “I have gap insurance but no car insurance. Am I still covered?”

Unfortunately, you can’t have gap insurance without car insurance. GAP insurance does not work if you don’t have collision and comprehensive auto insurance coverage in your policy. In fact, you probably won’t be able to buy GAP coverage unless you have collision and comprehensive auto insurance.

This is because GAP insurance pays the difference between your car’s value and your remaining loan balance. A totaled financed car with no insurance won’t get a payment from gap coverage if it doesn’t have a personal collision or comprehensive policy. So, there can’t be a difference between your car’s value and your loan.

So, what happens if you total a leased car without insurance? If you’re thinking to yourself, “I wrecked my car without insurance, what happens now?” the answer is you’ll have to pay your remaining loan balance out of pocket if you total it.

The good news is that most insurance companies won’t sell you GAP insurance that you can’t use. Additionally, if you need GAP insurance because you have a car loan, your lender will likely require you to carry full coverage.

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What to Do With Totaled Car if No Insurance

If you’re thinking to yourself, “I totaled my car without insurance and I’m not sure what to do with a totaled car without insurance,” you have a few options when deciding what to do with the vehicle. The easiest thing to do when considering what to do if car is totaled with no insurance is to surrender the vehicle to your car insurance company after they pay you for it. The insurance company will likely sell it to recoup some of its losses.

Most insurance companies will let you keep your car, though you’ll have to subtract your car’s scrap metal value from your payout. If you keep it, you can sell it to a junkyard for scrap, but you probably won’t get much for it.

Alternatively, you might find someone to purchase your totaled car as is, especially if it has collectible value. You might also find a mechanic to buy a totaled vehicle to use for spare parts. However, finding someone to buy a totaled vehicle can take a long time, and you probably won’t get too much more than if you sold it for scrap.

More About What to Do When Car Totaled With No Insurance

What happens to a totaled car with no insurance? You’ll have to pay out of pocket to repair your totaled vehicle if it’s not insured unless you weren’t at fault.

Whether you just bought a car or can’t afford to replace your vehicle, collision insurance offers important protection against accidents. Without collision insurance, you’ll have to pay for your own car repairs after an accident or risk losing your vehicle.

In addition, if you have a wrecked car with no insurance but owe a loan, you’ll have to speak with your lender to see what your options are.

Collision insurance usually isn’t too expensive, but some companies offer more affordable rates than others. If you decide to protect your car from collisions, compare as many companies as possible before you sign up for a policy.

Had no insurance after car accident? Enter your ZIP code below to compare quotes for free from the top providers and ensure you never deal with a financed car totaled with no insurance.

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