Getting a New Auto Insurance Policy After Totaling a Vehicle

After a significant accident, many vehicle owners wonder what they will do next. When an accident occurs, your auto insurance company can provide a lot of the help you need.

They will handle having estimates for the damage repair done. They will then determine if the car can have repairs or is a total loss. When the cost to repair the car is more than it is worth to replace it, the insurer may decide to label the vehicle totaled. When this happens, your car insurance pays up to the value of the car or policy limit. But, what happens then?

Will They Replace the Vehicle?

Depending on the type of policy you have and what you owe on the vehicle, the insurance company will determine if they will replace the vehicle.

Not all policies carry total replacement. In some cases, your loan will be more than what the vehicle is worth at the time of the accident. And, that means the insurer will not cover the extent of the loan. It’s up to you to handle those debts.

Getting Into a New Car

Once you get ready to buy a new vehicle, you’ll need to secure a new auto insurance policy. Your current insurer may be willing to offer you coverage. In other cases, they will not. Also, you can reasonably expect to pay more for car insurance from them. This is because you've already made a specific claim against the insurer.

However, you may find other plans available to you. Keep in mind that fault plays a role in the amount of risk you are to an agency. If you caused the accident, especially if it relates to DUI or reckless driving, insurers may not extend a new policy to you.

Nonetheless, you can find high-risk auto insurance plans. Additionally, you may need an SR-22 if the DMV decides that you are a high-risk driver. This may improve over time if you remain accident-free and claim-free.

When a vehicle becomes totaled, you may worry about getting into a new policy and plan. The good news is there are options available to most drivers. Turn to your car insurance provider to find out what you can expect. And, if the insurer is not willing to extend a new policy to you, request quotes from others. Chances are good you’ll find a policy right for your situation.

We can help you get a fast, free New York auto insurance quote. We can also help you understand the best ways to handle accident claims. Give us a call at 914.273.8511 for more information.