Do I have to pay insurance if my car is written off?
Asked by: Prof. Hugh Medhurst | Last update: December 21, 2025Score: 4.4/5 (70 votes)
Do I still need to pay my car insurance if my car is totaled?
Once a car is totaled and you sign the title over to the insurance company, the car no longer belongs to you and you don't have to pay to insure it. To legally drive a car that was totaled, you have to have the car inspected, get a "rebuilt" title, and purchase new insurance.
Do you have to pay insurance on a car that's paid off?
Once the loan is paid off and the lienholder is removed, you're free to explore other coverage options. You most likely won't need as much coverage as you had when you were locked into a loan or lease. However, you'll still need to carry some coverage since state car insurance requirements necessitate some form of it.
Do I need to tell my insurance company when my car is paid off?
Yes, you should. That way they can remove the lienholder's info from your policy and there's no question of who to issue payment to if you're in an accident.
What happens if you don't pay your car insurance deductible?
If you can't pay your car insurance deductible, your insurance company may not cover the damages until you pay that deductible amount. If it's a struggle, you can try to work out a payment plan with your insurer or explore other financial options.
Understanding Car Insurance - What is a 'Write Off'?
Is it better to have a $500 deductible or $1000?
Remember that filing small claims may affect how much you have to pay for insurance later. Switching from a $500 deductible to a $1,000 deductible can save as much as 20 percent on the cost of your insurance premium payments.
Can car insurance deductible be waived?
A collision deductible waiver, also known as a CDW, is an optional insurance feature that some auto insurers offer to waive your collision deductible if you have a qualifying claim. If a driver hits you, your collision coverage will still cover the damage to your vehicle, but you won't have to pay your deductible.
Do you still have to pay insurance if your car is not working?
No, you don't have to insure your car if it won't be driven at all, whether that's due to the car breaking down, your license being suspended, or a change in your driving needs.
What does it mean when an insurance company writes off a car?
What is a write-off? It's a term commonly used when the insurance industry determines your vehicle to be a total loss. In other words, the cost to repair your vehicle after a collision is more than its value after subtracting the recycle or salvage value.
Can I just stop paying my car insurance?
What happens if you stop paying your premiums without canceling your car insurance policy? If you want to discontinue your coverage, it is best to contact your insurer or your agent. If you stop paying your premiums but do not cancel your policy, your carrier will eventually cancel your policy for nonpayment.
Can you lose your car if you don't pay insurance?
If you're leasing a vehicle or have acquired a loan to finance a vehicle purchase, the lender probably requires some form of insurance, such as collision and comprehensive coverage. If you default on your insurance payments and lose your coverage, a lender is legally entitled to take back your vehicle.
Does your car insurance go down after car is paid off?
Simply paying off your car won't lower your premiums, but getting rid of some of the required coverage might. For example, you may no longer need gap insurance, which pays the difference between your car's loan and its decreased value if your car is totaled and is required by some lenders when financing.
Should I keep full coverage on my car after it's paid off?
If your vehicle is paid off, there are only a few instances that justify dropping collision coverage: Your vehicle's value is less than a few thousand dollars: If your car holds minimal value, collision coverage may not be worth carrying. This is especially true when a large car insurance deductible is involved.
What happens if I dont have full coverage and my car is totaled?
If you don't have insurance or don't have enough coverage, you're on the hook for the balance left on your vehicle even though the car is no longer drivable.
Can you ask for more money when your car is totaled?
In some cases, you may get more insurance money for a totaled car than for repairs. In addition, it is possible to negotiate a higher settlement by providing evidence that your car was worth more than the insurance company's initial valuation.
Do you still have to pay insurance if your car is stolen?
If the theft has been reported to your insurance you still need to continue to pay until your insurance company closes it out and compensates you for your loss. Depending on your insurance company and policy, they should credit back to you all the payments made from the date of theft/loss.
What happens when your car is totaled but still drivable?
Rebuilt/Reconstructed Title: Once a salvage vehicle has been repaired and inspected, the California Department of Motor Vehicles (DMV) will issue a "rebuilt" or "reconstructed" title for the vehicle. Once you obtain this, you can legally drive the vehicle.
Can car insurance be written off?
Tax deductions reduce your taxable income, which could bring down your overall tax bill. You can typically deduct some or all of your car insurance premiums if you're self-employed or own a business and drive your car for work. The amount you can deduct depends on how much you use the car for business-related purposes.
How long can you go without car insurance?
It is a crime to drive almost anywhere without car insurance coverage, even for a minute or just down the street. So, how long can you be without car insurance? If you're driving, you can't. Anytime you get behind the wheel as a licensed driver, you need insurance coverage or you'll risk incurring major consequences.
Can I cancel my insurance if my car broke down?
If you are not driving your vehicle — because it's broken down, in storage or for another reason — you do not need insurance. However, you should inform your state's Department of Motor Vehicles (DMV) before canceling your policy.
What happens if you don t use car insurance money for repairs?
The primary concern of not using insurance money for car repairs is the potential for worsening the vehicle's condition. Whether you ignore the issue or opt for cheaper repair options, your insurance provider may not cover any subsequent damage or malfunction.
What if I can't afford my car insurance deductible?
In any situation where you have to pay your car insurance deductible up front, you will need to dip into savings, ask family for help or take out a payday loan. These loans are truly the last resort option because they have very high interest rates.
Do I have to pay deductible if I was not at fault with Allstate?
Will I have to pay my deductible if I'm not at fault? It's possible, but we will do our best to recover the amount paid from the person responsible, including your deductible.
Do you have to pay deductible if not your fault?
If your coverage includes a Direct Compensation and Property Damage (DCPD) deductible, you must still pay the DCPD deductible even if you are not at fault.
Why do I have to pay deductible when it's not my fault?
Insurance companies collect deductibles every time they settle a claim, so they don't care who was at fault. You would not be at fault if your car was stolen from a secure facility, but you would still pay a deductible if you filed an insurance claim.