Question

My car is totaled in an accident. Do I still need to pay my insurance bill?

If your car is totaled in an accident you will need to keep paying your insurance bill until the claim process is fully complete in most cases.

If your car is totaled in an accident, you might wonder whether you must continue to pay for insurance afterward. And it is a yes in most cases. Your insurance coverage doesn’t automatically end just because your car is declared a total loss. Until your insurance company officially settles the claim and cancels the policy, your payment obligations typically remain.

This process ensures that any remaining costs, like loan balances if you’re financing, are fully covered. Once the claim is finalized, you may be eligible for a refund of unused premium payments. This happens if you no longer need the policy.

Most insurance companies give discounts to people who keep their policies. If you quit your policy and then need another one quickly, you will lose that discount. It might be a good idea to cancel your insurance if you won’t have a car for at least six months. Keep in mind that if you stop your policy, you will not only not have to pay any more premiums, but you will also have to pay more when you need to get insurance again.