Handling the Unexpected: The Reality of Uninsured Car Accidents

Posted on September 6, 2023 by Benjamin

Driving your vehicle around without any automotive insurance coverage is a risky move. If you get into a car accident that was your fault and your fault alone, you might face a harsh reality when it comes time to pay for the damage. Most motor vehicle insurance policies include both liability coverage and coverage for your own car if it is damaged in an accident. Liability coverage helps to pay for any damage you may cause to others, such as a total loss vehicle owned by another person or a driver’s medical bills. However, if you do not have insurance and are found at fault in the accident, then you will be solely responsible for all the damages.

The financial repercussions of an uninsured car accident or wreck can be devastating, especially if it involves a total loss vehicle. Fortunately, there are options for getting payment for your wrecked vehicle if you find yourself in this scenario. Moreover, some states have implemented laws that help protect drivers from having to bear the full brunt of such costs. This blog post will cover these topics and more. Let’s get started.

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What to Do After an Uninsured Car Accident

If you are in an accident that was your fault and you do not have insurance, the first step is to contact local law enforcement. This will help determine who is at fault (to blame) for the accident and may protect you from being held liable for any damages.

Next, make sure to document the accident as much as possible. Take photos of all the damaged vehicles and write down details like the time, date, location, and other drivers’ information. This will be helpful in case a lawsuit is filed against you by the other driver or insurance company.

If you are unable to cover the costs associated with an uninsured car accident out-of-pocket, you may be able to file a claim with your state’s Uninsured Motor Vehicle Commission (UMVC). This is an organization that helps settle disputes between drivers and insurance companies when no liability coverage is in place.

State Laws for Uninsured Car Accidents

Some states have enacted laws specifically designed to help protect drivers involved in uninsured car accidents. In most cases, these laws state that the driver who is found to be responsible must pay for all damages and cannot transfer liability to another person or company.

For example, California has a law called the Uninsured Motorist Statute of Limitations (SB 1298). This law states that if a driver is uninsured and causes an accident, then they are required to pay for all the damages up to a certain limit. The state of Indiana shares this ordinance.

In addition, many states have implemented laws that allow drivers to purchase uninsured motorist coverage even if they don’t have an insurance policy in place. This type of coverage helps protect you from having to pay out-of-pocket for any damage caused by an uninsured driver or vehicle.

What to Do With an Uninsured Totaled Car

Finally, if you are facing a financial burden related to an uninsured car accident and don’t have the funds to pay for it, consider selling it to a local auto scrapyard. Most junk car buyers pay cash on the spot for scrap cars, regardless of age, make, model, or condition. The most reputable cash for cars companies will provide free junk car removal, which also means they will not deduct a hidden charge from your offer for towing and pick up. Be on the lookout for that!

Tips for Avoiding Uninsured Car Accidents

The best way to avoid the potential financial hardship that comes with an uninsured car accident is to make sure you are properly insured. Make sure you are familiar with your state’s minimum requirements for auto insurance coverage and purchase a policy that will cover any damage caused by an at-fault accident. In addition, it’s important to be a safe driver. This means following all the rules of the road and being aware of your surroundings. Pay attention to other drivers and avoid distractions like cell phones while driving. Finally, always wear your seat belt and encourage others in your vehicle to do so as well.

In Summary

Driving without insurance is never a good idea, but sometimes accidents happen. If you find yourself in this situation, make sure to take the necessary steps to protect yourself and your finances. By following these tips and knowing what to do after an uninsured car accident, you can prevent potential financial hardship.

Ready to get a free offer for your wrecked car or truck? Take the first step towards earning some cash back for that clunker today! Contact Benjamin’s Junk Cars at 317-218-7133 to sell a junk car in Indianapolis for an instant cash payout. We serve all of Central Indiana with free junk car removal.

Frequently Asked Questions About Total Loss Car Value

Posted on November 19, 2021 by Benjamin

Insurance is a complex thing. The average person is not expected to know all of the terms and conditions, nonetheless the restrictions and limitations, of their auto insurance policy. So, after totaling your car, it is perfectly acceptable to have questions about your coverage and how much you might get.

Continue reading to review some frequently asked questions about total loss car value, including how total loss is determined by the insurance company, why your insurance payout might be less than your auto loan, your expectations when you still owe on a totaled car, and an easy alternative to earning fast cash for a totaled car in Central Indiana.

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Total Loss Vehicle FAQS

When it a Car Declared a Total Loss?

Insurance companies declare a vehicle a total loss in one of two scenarios: 1) the cost to repair the vehicle back to the pre-accident condition exceeds its actual cash value (ACV), also known as fair market value, or 2) the cost to repair the vehicle exceeds a percentage of its fair market value.

For instance, if your car’s actual cash value is currently estimated at $3500, but the cost to repair it back to its pre-accident condition is $4500, your insurance carrier will likely declare your vehicle a total loss.

If your state has a set total loss threshold, an insurance company will declare your car totaled if the cost to repair it exceeds a certain percentage of its actual cash value. For instance, if the state’s total loss threshold is below 60%, and the cost to repair your vehicle is more than 60% of its current fair market value, it will be deemed a total loss.

Why is My Insurance Payout Less Than My Auto Loan?

Sometimes after totaling a vehicle, an insurance policy owner will discover that their insurance payout is less than the original value of their auto loan. There are many reasons why this might occur. First, keep in mind that cars depreciate in value, even more rapidly after leaving the dealership. Other reasons why your insurance payout is not enough to pay off your loan is because 1) you do not have gap insurance, 2) you have a previously rolled over auto loan, or 3) an extended warranty was included in your car loan. In the third case scenario, you may be entitled to a refund on any unused warranty if you totaled your car.

Do I Have to Pay the Remainder of My Auto Loan After Totaling My Car?

Yes, you will be responsible for paying the remainder of your auto loan after totaling your vehicle. You can choose to pay off the balance right away or you can contact your insurance carrier and negotiate a higher payout. Although rare, your carrier may agree to cut you some sort of roll-over deal or new policy discount.

Will Insurance Pay Me if I Keep My Totaled Car?

If you want to keep your totaled vehicle after wrecking it, you likely can. Most policies do allow clients to do so. But beware; there is plain language insurance policy that revokes or lessens auto insurance payouts. Some automotive insurance policies will pay a client the actual cash worth of the totaled vehicle, minus any deductibles or fees owed by the client, and still allow them to keep ownership of their total loss car.

How Can I Sell a Totaled Car in Indianapolis?

The best way to sell a totaled car in Indianapolis is to choose a junk car buying company that pays cash on the spot. Many cash for cars companies in Indiana will send a check in the mail that sometimes never even arrives. Other auto salvage companies will pay in alternative forms of cash, such as money orders or checks. Receiving cash on the spot is the best way to earn a profit off of a totaled car. Be sure to also choose a company that provides free junk car removal so that you do not have any hidden fees deducted from your offer.

Are you looking for a responsible Cash For Cars Company in Indiana that can meet and exceed all of your expectations for profitable junk car selling? Contact Benjamin’s Junk Cars at 317-218-7133 to sell a total loss car in Indianapolis, Indiana for cash on the spot. We provide free junk car haul away, so all you need to do is call!

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Will Insurance Pay Me if I Keep My Totaled Car?

Posted on October 26, 2020 by Benjamin

If you want to keep your totaled vehicle after wrecking it, you likely can. Most policies do allow clients to do so. But beware; there is plain language insurance policy that revokes or lessens auto insurance payouts. Continue reading to learn more about the possible insurance payout outcomes of keeping a total loss vehicle, and your options for earning a profit if the insurance company does not pay up.

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The Basics Total Loss Vehicle Insurance Facts

Insurance policies vary so greatly from person to person, and among companies, that there is not a baseline across the board. Your policy might be entirely different from the next person’s policy, and perhaps even different than other policies offered by your carrier. However, most insurance policies do have a baseline structure for total cars and payouts. Here are the fundamental facts you need to know:

Automotive insurance clients with full coverage will receive compensation from their insurance carrier to pay for the damages of the wrecked car.

Clients with full coverage auto insurance will receive compensation to cover the market value of the vehicle if the car is deemed a total loss (totaled).

Clients with full coverage car insurance who wish to keep their totaled car must inform their insurance carrier of their decision.

Full coverage auto insurance clients who choose to keep their totaled car will receive less compensation, or none at all, from the insurance company.

What to Do With a Totaled Car

Some automotive insurance policies will pay a client the actual cash worth of the totaled vehicle, minus any deductibles or fees owed by the client, and still allow them to keep ownership of their total loss car. In this case, you can choose to use the insurance payout to repair your vehicle as much as possible, and then pay for the remaining repairs out of pocket. Or you can choose to sell your totaled vehicle to an Indianapolis junk car buyer for instant cash.

In some cases, car insurance companies will not allow clients to retain ownership of a totaled car if they are accepting an insurance payout. When this happens, clients are typically paid a higher payout, and the insurance company will arrange the physical collection of the vehicle.

Indianapolis Indiana Junk Car Buyers Who Pay CASH for Totaled Vehicles

Call Benjamin’s Junk Cars at 317-218-7133 to earn the most cash for your junk car in Indianapolis, Indiana. Our experienced junk car buyers serve all of Indianapolis and its surrounding areas, and pay CASH ON THE SPOT for all junk cars, regardless of age or condition. We buy cars, trucks, motorcycles, farming equipment, construction equipment, and anything else that runs on fuel. With cash payments, free quotes, and free pickup, there is no easier way to sell a junk car in Central Indiana. Get started today!