What Happens If You Have No Collision Coverage??

Remember, collision coverage only covers damage to your own car; it won’t provide coverage if you hit another person’s vehicle.

However, if the other driver is at fault, their property damage insurance, and not your collision coverage, will pay to repair your car.

What do you do with a totaled car?

5 things to do with a totaled car

  • Take the money. After an accident, your insurer or the at-fault driver’s insurer will tell you the vehicle’s actual cash value , then make its decision to total the car based in part on how much repairs will cost.
  • Keep it and fix it.
  • Keep it and don’t fix it.
  • Keep and sell for salvage.
  • Donate it.

Do I still have to make payments on a totaled car?

Do you have to pay back the rest of the loan on a totaled vehicle? The answer is, unfortunately, yes. Even if your car is deemed a total loss and you can no longer use it, you are still responsible for paying any balance left on the car loan.

When your car is totaled and you still owe money?

If your vehicle is totaled and you still owe more than it’s worth, your car insurance company will pay only actual cash value (ACV) for your vehicle. That is the fair market value of your vehicle the instant before it was damaged in the auto accident.

Photo in the article by “Wikimedia Commons” https://commons.wikimedia.org/wiki/File:Two-car_collision_in_the_USA.jpg