My Car is Totaled But I Only Have Liability Coverage - What Are My Options?

Getting in a serious accident where your car is deemed a total loss can be emotionally and financially devastating. Your stress levels worsen if you only carry liability coverage on the vehicle. Without comprehensive and collision insurance, you may be wondering:

• How will I pay to repair or replace my wrecked car?
• Am I just stuck having to buy a new vehicle out of pocket?
• What options do I have for getting any value from my totaled car?

This guide covers what steps to take if your car is totaled and you only have liability insurance. We'll explore your options for recovering costs along with tips for navigating this challenging situation.

Assessing the Damage - Is Your Car Truly Totaled?

Before deciding your car is a write-off, make sure you understand what constitutes a total loss. Legally, there are two classifications of a totaled vehicle:

• Structural total loss - Repair costs exceed ~75% of the car's pre-accident value. Repairs either cannot safely restore the structural integrity or are not worth the cost. This is considered a true total loss.
• Constructive total loss - Repairs do not exceed 75% of value but the owner decides the car is too damaged to be repaired economically or safely. The insurer settles it as a total loss at the owner's choice.

Most often a car is considered totaled or written off when the recovery value via salvage sales and owner payout will cost the insurer less overall than doing extensive repairs.

Before you make any decisions, have a certified collision shop fully assess the damage and provide a detailed repair quote. Get a second professional opinion if needed. This will confirm if the car is structurally totaled or if you want to constructively total it due to high repair costs.

I Have Liability Insurance Only - What Are My Options?

Unfortunately your options are limited if your car is totaled and you only carried liability insurance, which covers damage you cause to others but not your own vehicle. Here's what liability-only policies typically provide:

• Covers injuries/damages suffered by other parties you hit
• Provides legal/medical protection if you are sued
• Does NOT cover any repairs or value loss to your own vehicle

With only liability, you will need to pay all repair or replacement costs on your own totaled car out of pocket. However, you may be able to recover some funds through these options:

• Negotiate a small settlement from the at-fault driver's insurance (if you didn't cause the accident)
• Sell the totaled car to a salvage yard or junkyard to get some cash value from the vehicle
• Consider an uninsured motorist claim if the at-fault driver was entirely uninsured
• Explore assistance programs like temporary car loans or transportation support services

Paying for a replacement vehicle or covers repairs after only carrying liability insurance can be financially devastating. Let's look at each option more closely.

Can I Get a Settlement From the At-Fault Driver?

If the accident was clearly the other driver's fault, you may be able to get a small settlement from their liability insurer to help offset your losses.

• The at-fault driver's policy owes you for damages they caused to your vehicle. Their liability coverage should pay for your repairs or vehicle value loss.
• However, their insurer will lowball any settlement offer since you don't have comprehensive/collision coverage to advocate for you or allow flexibility in negotiations.
• Demand a copy of the accident and police reports. Calculate the total cost to repair or replace your car including rental fees. Negotiate firmly using these figures.
• Hire a personal injury attorney if needed to press for a fair settlement. But fees may eat into any payout.
• Accept that any settlement will likely only cover a fraction of your total damages. But some cash is better than none.

Pursuing a liability settlement is usually the best recourse. But temper expectations on how much money you'll recover from their insurer.

Is Selling My Totaled Car an Option?

Selling your totaled car to a junkyard or auto salvage yard allows you to recoup some cash value back from the vehicle. The salvage dealer will sell usable parts or scrap the materials.

This salvage sale process involves:

• Getting quotes from local salvage yards - larger totaled vehicles tend to get better offers
• Negotiating the best price - highlight usable parts and scrap metal value
• Signing over the title - salvage yards can't purchase vehicles without clear titles
• Handing over keys and possession of the car - you no longer own the totaled vehicle
• Removing any personal items from the car - the salvage company will dismantle the vehicle
• Receiving payment from the salvage dealer - this helps offset the costs of your loss
• Reporting the sale to your insurance - retain paperwork for liability protection

Salvaging a totaled car rarely yields more than a few hundred dollars but it's money you wouldn't get otherwise. Removing the wrecked car from your possession also saves on storage fees.

Is There An Uninsured Motorist Option?

If your car was totaled by a driver with absolutely no insurance, you may have an uninsured motorist claim option. This depends on a few factors:

• Your own policy - It must have uninsured motorist (UM) bodily injury coverage in that state. UM property damage coverage also helps.
• Police report - Must clearly confirm the other motorist was uninsured. Get their contact info.
• Evidence - Dashcam footage or witness statements proving the other driver's fault.

If you have UM coverage and can prove the accident was the other party's fault, their liability insurer steps in to cover damages, up to your policy limits. This is treated like any other at-fault claim.

The catch is that UM coverage minimums tend to be low. After paying medical bills, little may be left over for car repairs or replacement. But tap into all available options.

Are There Support Programs I Can Use?

Depending on your specific circumstances, some charitable programs or government-sponsored support options may be available:

• Temporary loaner car programs - Some non-profits and credit unions offer short term loans of used vehicles for transportation.
• Rideshare gift cards - Local community groups may provide some credits for Uber, Lyft, etc to cover transportation costs.
• Public transit subsidies - Programs exist to help with covered bus passes or transit costs while you get back on your feet.
• Assisted vehicle purchase - Charities occasionally help victims of accidents or illness buy replacement vehicles at reduced costs.
• Interest-free car loans - Some credit unions offer these to help members who have suffered temporary hardship.
• Driver's assistance funds - Rare, but some insurance providers offer accident forgiveness support funds.

Resources are limited, so check rules and eligibility closely. But it's worth exploring all available support options if your totaled car leaves you stranded. These programs can provide small amounts of financial or transportation aid.

Preventing This Situation in the Future

The biggest takeaway to avoid ending up with a totaled car again but only liability coverage is to carry full coverage insurance. Comprehensive and collision policies protect your investment with:

• Collision coverage paying to repair or replace your vehicle regardless of fault
• Comprehensive covering damage from incidents like fire, theft or vandalism
• Better ability to negotiate fair claim settlements with insurers
• Typically just $50-$150 extra per month provides this essential protection

Shop quotes annually as rates can vary between insurers. Cut other costs to afford full coverage, which is one of the best investments to safeguard your assets and transportation.

FAQs

Still trying to figure out your options after your car is totaled with liability-only insurance? Here are answers to some common questions:

Will my insurance pay anything if I only have liability?

No, liability insurance only pays for damage you cause to others - it does not cover repairs or replacement costs for your own vehicle. Without comprehensive and collision policies, your insurer owes you no settlements for a totaled car.

What if I'm still making payments on a totaled car?

You are still responsible for paying off your vehicle loan or lease on a totaled car even if insurance doesn't cover the damages. Work with lenders to explore options like loan forgiveness. Refinancing at a lower rate can help manage payments.

Can I keep and repair my totaled vehicle?

Legally you can keep a totaled car as long as the title is not branded as salvage. But extensive repairs are rarely wise financially on badly damaged vehicles. Explore the costs closely before deciding to fix a totaled car.

How much money can I get selling my totaled car?

It depends on the vehicle, damage, and salvage market. But typically expect only $50-$500 for a fairly new totaled car. Luxury or classic cars in repairable condition can yield more. Shop around with salvage yards to maximize your payout.

What info do I need when selling my totaled car?

Have the vehicle title (signed over), keys, and any repair estimates or accident reports available. These prove your ownership and help salvage dealers assess repair potential and value. Remove license plates and personal belongings before releasing the vehicle.

Dealing with a totaled car when underinsured can be an extremely challenging and stressful financial situation. But by tapping into all available options and resources, you can hopefully recover some transportation and monetary value from the vehicle loss. Make sure to get full coverage protection moving forward to avoid repeating this hardship.

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