Do you need to still pay insurance when your car is totaled?

Answer 1

Assuming that you had collision coverage on your car, when it is totalled, the insurer pays the "actual cash value" of the car, less the collision deductible. This represents the market value of the car immediately before the collision. It takes into account make, model, mileage, condition, and other features.

When the car is totalled, you will be given the option of keeping the salvage or letting the insurer keep it. If you keep it, the amount paid to you will be reduced by the value of the salvage.

If you keep it the salvage and have the car repaired, sometimes you are allowed to obtain a "salvage title" from the motor vehicle authorities. If the vehicle, as rebuilt, is roadworthy, you will need to insure it as you would any other vehicle.