What happens if you total your car with no insurance?
What happens when your car is totaled if you still owe on a loan and have no insurance? You’ll need to pay all costs out-of-pocket if you total a car without insurance. Learn about those costs below.
Free Auto Insurance Comparison
Secured with SHA-256 Encryption
|
Written by
Leslie Kasperowicz
|
|
Reviewed by
Daniel Walker
|
UPDATED: May 26, 2022
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
- A car crash without insurance means that you will be responsible for the whole cost of your vehicle’s repairs and the other driver’s medical expenses and damages
- A totaled (total loss) car is a vehicle that is so damaged that the cost to repair would exceed the full value of the car
- If your car is totaled and you still owe on a loan and have no insurance, you’ll have to keep repaying the loan amount
What happens when your car is totaled if you still owe on a loan and have no insurance? If you don’t have any auto insurance, got into an accident, and totaled your car, you’re legally liable to pay 100% of all the expenses related to the accident. But what do these expenses entail?
From repairing or even replacing the vehicles involved to medical bills, let’s look at some of the most prominent costs you’re most likely going to have to cover.
If your car’s been totaled with no insurance— or if you’re worried about this happening— you need to find cheap auto insurance coverage. No matter what your situation, the best way to save money is to shop around. Enter your ZIP code above to get multiple quotes for insurers in your area.
Table of Contents
What happens if you total a car without insurance?
If you don’t have insurance and are involved in an accident where your car is damaged beyond repair, you will be responsible for all of the costs related to the accident. Take a look at what that might include.
Car Repairs and Replacement
Uninsured drivers with no insurance will have no recourse to replace their vehicle if it’s damaged too much to be repaired. If your vehicle was financed, you’ll still be held responsible for paying off the rest of the loan. Moreover, if you’ve collided with another vehicle, you’ll have to bear the cost of its repair or replacement. Finally, you’ll also be held liable if you cause damage to someone else’s property, be it a fence or a building wall.
Medical Costs
An injured person might sue for medical expenses if you caused the accident. Likewise, not purchasing auto insurance coverage might lead to a lawsuit that would put your possessions and resources in jeopardy.
A “financial responsibility” rule is a requirement in every state. For example, if you or someone else driving your automobile causes an accident, you must be able to cover the costs. A state bond, which may cost upwards of $50,000, is one less-than-practical approach to meet financial responsibilities if you can’t afford auto insurance.
On the other hand, car insurance is the quickest and most cost-effective method to meet your financial responsibilities.
Jail Time
You may go to prison for a totaled car if you do not have insurance. The majority of states do not impose prison time on first-time offenders, but a small minority do. For example, it is possible to spend up to one year in prison in Michigan if you drive an uninsured vehicle, enable someone else to drive your uninsured car, or drive a vehicle that does not have no-fault insurance.
The table below shows just how many people are driving around while uninsured, according to data collected by the Insurance Information Institute (III).
| State | Uninsured | Rank |
|---|---|---|
| Florida (3) | 26.70% | 1 |
| Mississippi | 23.70% | 2 |
| New Mexico | 20.80% | 3 |
| Michigan | 20.30% | 4 |
| Tennessee | 20% | 5 |
| Alabama | 18.40% | 6 |
| Washington | 17.40% | 7 |
| Indiana | 16.70% | 8 |
| Arkansas | 16.60% | 9 |
| D.C. | 15.60% | 10 |
| Alaska | 15.40% | 11 |
| California | 15.20% | 12 |
| Rhode Island | 15.20% | 13 |
| New Jersey | 14.90% | 14 |
| Wisconsin | 14.30% | 15 |
| Texas | 14.10% | 16 |
| Missouri | 14% | 17 |
| Illinois | 13.70% | 18 |
| Colorado | 13.30% | 19 |
| Louisiana | 13% | 20 |
| Oregon | 12.70% | 21 |
| Ohio | 12.40% | 22 |
| Maryland | 12.40% | 23 |
| Arizona | 12% | 24 |
| Georgia | 12% | 25 |
| Kentucky | 11.50% | 26 |
| Minnesota | 11.50% | 27 |
| Delaware | 11.40% | 28 |
| Nevada | 10.60% | 29 |
| Hawaii | 10.60% | 30 |
| Oklahoma | 10.50% | 31 |
| West Virginia | 10.10% | 32 |
| Montana | 9.90% | 33 |
| Virginia | 9.90% | 34 |
| New Hampshire | 9.90% | 35 |
| Connecticut | 9.40% | 36 |
| South Carolina | 9.40% | 37 |
| Iowa | 8.70% | 38 |
| Utah | 8.20% | 39 |
| Idaho | 8.20% | 40 |
| Wyoming | 7.80% | 41 |
| South Dakota | 7.70% | 42 |
| Pennsylvania | 7.60% | 43 |
| Kansas | 7.20% | 44 |
| North Dakota | 6.80% | 45 |
| Nebraska | 6.80% | 46 |
| Vermont | 6.80% | 47 |
| North Carolina | 6.50% | 48 |
| Massachusetts | 6.20% | 49 |
| New York | 6.10% | 50 |
| Maine | 4.50% | 51 |
Get Your Rates Quote Now |
||
There are a lot of drivers who don’t have auto insurance on the roads. The III estimates one in every eight drivers in the U.S. is uninsured.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
The Repercussions If You Total a Car Without Insurance
According to the National Association of Insurance Commissioners, every state in the United States except New Hampshire mandates motor liability insurance. Therefore, you may lawfully drive without insurance if you can establish that you meet New Hampshire’s alternative financial responsibility criteria. However, according to recent studies, 12.3% of drivers are uninsured despite these laws.
So even if you don’t get into an accident or damage your vehicle, driving without insurance may still get you in hot water with the law if you’re caught. The following are some of the possible outcomes.
Hefty Fines and License Suspension
There is a fine range of $100 to $1,500 for driving without insurance, depending on the state. Moreover, if you don’t have auto insurance in certain places, your license might be suspended until you do. The suspension might be more severe in other states. For example, you might lose your license for up to a year in New York if you don’t have vehicle insurance and get into an accident.
Vehicle Registration Suspension or Impoundment
You can lose your vehicle registration if you do not have auto insurance. For example, Massachusetts will stop your car’s registration until you provide evidence of insurance. Likewise, it may be seized if you’re driving without insurance in California.
Higher Auto Insurance Rates
You’ll have a “coverage gap” if you drive without insurance. In addition, you’ll have to pay more for insurance if you have a lapse in your coverage since insurers regard you as a higher risk.
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 |
|---|---|---|---|
| Nationwide | $651.19 | $736.52 | 13.10% |
| Liberty Mutual | $696.00 | $810.00 | 16.38% |
| Geico | $730.18 | $786.88 | 7.77% |
| Progressive | $882.00 | $901.00 | 2.15% |
| Farmers | $974.82 | $1090.8 | 11.90% |
Get Your Rates Quote Now |
|||
As long as you keep in touch with your insurer, it shouldn’t become an issue.
Safeguard Yourself and Your Car With Auto Insurance
If you own a vehicle but do not have auto insurance, you should get it quickly. You may also want to consider purchasing uninsured motorist coverage to safeguard your investment in the event of a collision with an uninsured car. Shop around and get the lowest auto insurance company costs available from several insurance providers to get the most outstanding coverage and pricing for your budget.