If you total your car with no collision insurance, then your insurance will not reimburse you for the value of your vehicle. Collision insurance pays to repair or replace your car after an accident, so without it, you might have to pay out of pocket to replace the car.
If the accident is your fault and you don’t have collision insurance, your best option is to sell the car in its current state. You will still be able to recover something through the salvage value, which is the amount of money that a salvage yard will pay for the parts and frame.
On the other hand, if the accident is not your fault, then the at-fault driver’s property damage liability insurance will cover the cost of your loss, up to their policy limits. In this case, you will still be reimbursed for the value of your car even if you don’t have collision insurance. However, if your car’s value exceeds the at-fault driver’s liability limits, you will have to file a claim using uninsured/underinsured motorist coverage, file a lawsuit against the driver, or cover the remaining costs yourself.
Collision insurance is not required by any state laws, but you will need to carry it if your car is leased or financed. In general, it’s a good idea to carry collision insurance if you can’t afford to replace your car and the annual cost of coverage is less than 10% of your vehicle’s value.
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