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If my vehicle was totaled in an accident, do I still need to pay my insurance bill?

I was involved in an accident where I was considered at-fault. My insurance bill is due next week, but I don't see the point in paying it since I don't have a car. Should I pay it or cancel it?

May 12, 2017 Belfair, WA

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Ava Lynch

Insurance Analyst

Credentials
  • 7+ years of Experience in the Insurance Industry

Ava joined The Zebra as a writer and licensed insurance agent in 2016. She now works as a senior insurance contributor, providing insights and data a…

Thanks for reaching out to the Zebra!

The decision to maintain your auto insurance coverage depends on whether or not you plan to buy a new vehicle shortly. If you cancel your policy and buy another vehicle within the next month or two, the insurance rates for that vehicle will be much higher than if you maintained coverage. It's understandable to want to save money while you're between vehicles, but paying for a month or two now may be worth it compared to potentially higher rates if you have a lapse in coverage.

Most insurance companies offer discounts for being continuously insured and you will lose that discount if you cancel your policy and need another in a short time frame. If you plan to be without a vehicle for 6 months or longer, it might make sense to cancel your policy. Remember that if you choose to cancel your policy, you won't be paying insurance premiums but will also be faced with higher rates when you need to be insured again.

If you're looking to save money on your car insurance, it's good to be aware of all the other rating factors insurance companies analyze. You can try to improve certain things, like credit score and safe driving, to get better rates when you are ready for another vehicle. You can also call our agency to get a personalized quote for you at 888-444-8949 to see if we have any carrier options available to you.

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