View Our New Office in Ellicott City
flag flag flag

Back to blog

What Should I do About my Car Payments and Insurance after my Car is Declared a Total Loss?

Q: My vehicle was declared a total loss, but the insurance company hasn’t contacted me about the numbers yet. Do I still need to make my car and insurance payments?

A: Yes, you are still responsible for making both payments even if you no longer have use of your vehicle. Here’s why:

  1. Uninsured Vehicle Repercussions: If you don’t maintain insurance on your vehicle, the DMV or MVA may notice that your vehicle is uninsured and impose administrative fees until they see an active insurance policy.
  2. Credit and Repossession Risks: Your loan company could report late or non-payment to the credit bureau, impacting your credit score. Additionally, they may take steps to repossess your vehicle.

These consequences could hinder your ability to secure a new car loan or reinstate your auto insurance policy. They might also result in higher insurance rates due to a reported lapse in coverage.

Conclusion: It’s essential to wait until your car title has been signed over to the insurance company before canceling your insurance or halting payments on your vehicle. Only make changes to your insurance policy once the ownership of your vehicle has officially changed hands.

by Sara Treuhaft, March 18, 2024

Our Results
4.2 Million Dollar Settlement For Family Of Victim Who Died In A Train Crash In Baltimore Maryland.
4 Million Dollar Settlement For Family Of Victim Killed In Maryland Motor Vehicle Accident (Wrongful Death).
$1,250.000.00 Settlement For A Motorcyclist Who Was Wrongfully Killed In A Maryland Motorcycle Accident.
Popular Blog Posts Posted on: December 17, 2012 you or a loved one… Keep reading Please note: the following is not legal advice. Do not… Keep reading When you eat out at a restaurant, you’re, in most… Keep reading
Service Area from Baltimore, Maryland to Northern Virginia you can count on us to stand up for you. Give us a Call:
Arlington County Clark County Fairfax County Fauquier County Fredericksburg County Loudoun County Prince William County
Arlington Chantilly Fairfax Falls Church Herndon Lorton Manassas McLean Richmond Alexandria Ashburn
Annandale Centreville Dale City Dumfries Leesburg Reston Springfield Tyson’s Corner Vienna Woodbridge
Anne Arundel Baltimore City Baltimore County Carroll County Frederick County Harford County Howard County Prince George’s County Montgomery County
Annapolis Arbutus Baltimore Bel Air Bethesda Bowie Cambridge Catonsville Centreville Columbia Dundalk Easton Ellicott City Essex Ferndale Frederick Ft. Meade Gaithersburg
Germantown Glen Burnie Greenbelt Hanover Hyattsville Laurel Linthicum Ocean City Olney Owings Mills Pasadena Randallstown Rockville Salisbury Severn Silver Spring Takoma Park Towson