WHAT TO DO WITH A TOTALED CAR AND NO INSURANCE TO COVER IT UP
Getting into a car accident is the last thing that anyone would want in their driving history. However, roads are unpredictable and an accident can occur anytime, where you could injure yourself or some other people causing damage of your car, other’s cars and other’s properties. To get the repair cost and to cover all the related expenses caused by the accident, insurance coverage is a must. However, there could be a scenario when you would not know what to do with a totaled car and no insurance to cover the damages.
Honestly speaking, such a situation would actually break all hell loose on you. Firstly, if you total the car that means that either the car is not left in a repairable condition or the cost of repairs would be more than the worth of the car. If you have insurance coverage, your insurer would owe you the retail value of the totaled car as per the market at the time of the accident. In case when you do not have any insurance, there is no such question of being paid by the insurance company and you would be responsible for all expenses that would be related to the accident. There could be a couple of scenarios that could rise after meeting an accident that would leave your car totaled without any insurance.
A car accident where you do not damage others
If you happen to meet an accident where your car is left totaled and you do not have any insurance to cover, and you are the only party who got injured, you would have to bear all the medical expenses for your injuries. If the car is totaled, there is not much to do with the car but to sell it off to crashed car dealers, as no insurance company would pay a single cent for that vehicle.
A car accident that causes damage to others
If the car accident causes damage to other people in the form of personal injury or property damage, you would be liable to pay the expenses to cover up those damages. In addition to that, you would also be charged with various financial penalties by the authorities for driving without insurance. Depending on the severity of the accident caused by you, you would also stand to lose your license to drive if the authorities discover that you were driving without insurance.
The only respite here is that if the accident was caused not for your fault, you may get the benefit of the coverage of non-insured motorists that the other driver’s insurance will have. With such an insurance cover, you would get covered for the damages caused by the accident, only if it is not caused due to a fault from your end.
Now that you know what to do with a totaled car and no insurance to cover you up, it is best to hold the minimum state required insurance, so that even if you get caught in an accident, not much financial losses would have to be incurred by you. Additionally, with an insurance covering you up, you would get some handsome money for the totaled car from your insurance which can be invested on buying a new car.
You may want to check out my other guide on Know At What Age Does Car Insurance Go Down and A Quick Look At The Average Car Insurance Rates By Age Ande State