How to Afford a New Car After Your Old One is Totalled

Monday, November 11, 2019, 6:00 AM | Leave Comment

Getting into a serious accident can disrupt almost every aspect of your life, and many people struggle to get a new vehicle after being involved in a collision.

While auto accidents are always going to be stressful, there are a few simple steps that you can take to preserve your finances and get back on the road as quickly as possible.

How to Afford a New Car After Your Old One is Totalled

  • Collect Information on the Totaled Vehicle

    When the accident first takes place, you need to collect key information such as where the collision occurred and who was involved. You should also spend a little bit of time researching what the value of your vehicle was before the accident. Once you have that information, it will be much easier to negotiate with a claims adjuster. Drivers who feel as if they are being treated unfairly following an accident should speak with an attorney about all of their options.

  • Contact an Attorney

    An experienced car accident lawyer is going to make your life much less stressful after a collision. These situations can become very complex in the blink of an eye, and you could end up with a variety of expenses that you might not be covered by your insurance. Your attorney will work closely by your side and help you develop a solid case. They can also file all of the proper paperwork and negotiate with the claims adjusters so that you can focus on your health and recovery.

  • Use Your Gap Insurance

    If you have taken out a sizable loan for your vehicle or you leased it from a dealership, then you should consider investing in gap insurance. While your policy might help you cover some of your expenses, it probably won’t pay off your loan or cover the rest of your lease. Gap insurance is a small rider that you can add to your policy to help you cover those expenses. That type of coverage will allow you to use your insurance money on a new vehicle instead of paying off your old lease or loan.

  • Place a Down Payment With Your Payout

    After the case has been settled, you should receive a lump sum from your insurance provider or another driver’s insurance company. With that money, you will be able to make a down payment on a new vehicle. As long as the settlement is used as a down payment on a new car or truck, you probably won’t have to pay taxes with it, but you should speak with an attorney or tax representative before you spend that money.

You might hope that you are going to immediately receive a check after being involved in an accident, but that isn’t always the case. In order to receive fair compensation, you will most likely need to work with an experienced attorney who can help you develop an airtight case.

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