What happens when your vehicle has been totaled and there is no insurance for it? What also goes on to happen when total a car that is still on loan and still has no insurance? Driving a vehicle which has no insurance is one of the biggest crimes in certain places and what this means is that for you to be able to drive a vehicle, you should at least have a state minimum insurance policy in order to prove financial responsibility or for you to drive legally. If you want to know what to do about a car totaled still owe on loan no insurance then keep reading.
If you are not financially responsible or you have no proof that the vehicle you drive is yours and you end up getting involved in a car accident then it may fall to you to bear all the cost of or expenses that your vehicle might incur one hundred percent. Furthermore, if you end up totaling a car that is still on loan and one without any insurance then it is also your responsibility one hundred percent to pay off the car loan. If the car you drive has no insurance and has been totaled or you are worried about this happening, here’s what to do.
Car Totaled Still Owe On Loan No Insurance
What you need to do if your vehicle has been totaled and it has no insurance or you are worried about it happening to you then you need to ensure that the car has a coverage immediately. No matter what the situation might be, shopping around is the best way for you o save money and in addition to the financial expenses that you might bear if you are not careful, you might also end up having your drivers license suspended. You also stand the risk of facing other crimes and being sent to jail.
Purchasing an affordable insurance policy is what you must do if you want to avoid all of these penalties. If you are involved in this kind of accident where the car gets totaled, still owes on loan and has no insurance then you have to make sure you call a tow truck to tow the car or call emergency services if you have sustained any injuries. Everything at this point becomes your responsibility alone and that includes both the cost of repairing your vehicle and your own medical bills.
However, if the accident here also involves another car and you are the at fault driver then you are also going to bear the cost of the repair that would be done on the other vehicle as well. If you find yourself at this point, what you must do includes;
- Remaining at the scene of the accident
- Avoid stating that you have insurance when you do not have insurance
- Ensure you wait for the police to come and take a report
The only time you can freely leave the scene of the accident is when all we mentioned above has been done. You would need to pay out the loan out of your pocket if you end up totaling a car that is still owing loan and is also without insurance. All of these tells you why you simply need to have insurance coverage on your car. It becomes a bit worse if you are at fault for the accident involving another driver because you would pay for the medical bills and the damages the other driver’s vehicle must have suffered during the accident you caused.
How Total loss Affects A Vehicle That Is Being Financed
After being involved in a car accident, the car can be said to be a total loss if the cost of repairing the car has been said to exceed the actual value of the car at the time of the accident. There are several states laws regarding this situation right here but if the car that has been totaled is yours then you also have the option to keep it even after it has been declared a totaled car. However, if the vehicle has no insurance coverage then the car would be taken from you and all insurance money goes directly to the owner or lender.
Lastly, the case becomes slightly different when you total a car that has insurance. If it happens that there is an insurance policy in place then it is up to the auto insurance to cover up for all the damages that your insurance policy is able to cover up for.