What Happens if Insurance Can’t Fix My Car?

April 25, 2023
Car Collision Repair

When you are in an accident, what you can do with the insurance money depends on a few different factors. At Freedom Collision Center, we’ve put together a guide to help you navigate your car insurance in the event of a collision.

Can I Keep the Money from My Insurance Claim?

If you own your car fully, with no more payments due, you can choose to keep the insurance payout and use it for another purpose but keep in mind that your car may be unsafe after a collision, so it is recommended that you have the car repaired if you plan to keep driving it. If you still owe payments on your vehicle, you will likely need to use the insurance money for repairs, which will typically be sent directly to the repair shop.

What Happens If My Car is a Total Loss?

If your insurance company cannot repair your car, they may declare it a total loss. This means that the cost of repairs exceeds what the insurer would pay, and therefore they decide it is not worth repairing.

If this happens, you will be compensated for your losses up to the limits determined in your policy. Compensation can come in the form of either a lump sum cash payment or a replacement car. Depending on your policy, you may be offered a settlement that is based on the actual cash value of your car at the time of the accident. In this case, depreciation will be taken into account. If you choose to receive a replacement vehicle, you should compare the cost of the replacement car to the total loss settlement.

If there is a difference in cost, you may need to make up the difference out-of-pocket. In either situation, it is vital to keep all paperwork related to your accident and insurance claim so that you can provide proof of any losses or expenses incurred as a result. This can help you to ensure that you receive the total amount of compensation owed to you.

If you choose to keep the car, you will not receive an insurance payout. The car needs to be taken out of commission for you to receive your payout.

What to Do Before Filing a Claim

Furthermore, you should always read through your policy carefully before filing a claim so that you are aware of any restrictions or exclusions that may apply in the event of a total loss. Knowing precisely what is covered by your insurance can help you ensure you are fully prepared for an accident.

If you have questions about your insurance policy or what to do if your car is declared a total loss, contact your insurer for more information. They can help answer any questions and provide additional details on proceeding with a claim. It is essential that you understand all the details of your policy and what to expect in the event of a total loss so that you can be sure to receive full compensation.

Collision Repair Services in Morgantown

At Freedom Collision Repair, we offer a wide range of collision repair services performed by our experienced team of technicians. Contact us today to learn more!



Morgantown Center

696 Fairmont Rd.
Morgantown, WV 26501

(304) -241-1325

Freedom Auto Group's Morgantown Center