What Car Insurance Issues Are There When A Car Is Totaled?

By Mike Anderson Posted in Car Insurance News

Important Things To Consider

There are several things to consider after a car has been totaled in an accident. The biggest problem is owing more money on the car than its Blue Book value. If you have the right type of insurance, your insurance company will only cover the worth of the car given its condition before the accident, not the amount of money you still owe on the car. You would still be responsible for the difference in the amount you owe after the insurance company pays out according to the terms of your insurance.

Another problem could be the type of insurance you have on your car at the time of the accident. If you only carry liability insurance then your insurance company will only cover the cost of repair and other expenses for the other vehicle in the accident if you were at fault. If you were not at fault then you would get nothing under the liability insurance. Hopefully, the other driver involved in the accident would have insurance but if they don’t, then you would be out a car and the money.

Voidable Conditions

Other conditions could void the terms of your insurance contract depending on the fine print in your policy. Your insurance company could deny your claim on the totaled car if you were driving under the influence or charged with reckless driving. It is very important to read over your policy and make sure you follow the claim procedures exactly. If you only carry liability insurance on your vehicle, you could be setting yourself up for a huge financial loss. If you are in an accident that is someone else’s fault you can’t count on them to have car insurance at all, so it is important to protect yourself and your vehicle.

Related posts:

  1. What Are The Minimum State California Auto Insurance Laws?
  2. How Much Car Insurance Do I Need?
  3. What Are The Best Liability Coverage Limits?
  4. What Texas Car Insurance Minimums Mean for San Antonio Drivers
  5. What Types Of Cars Are The Cheapest To Insure?

Leave a Reply