How to Pay for Repairs Without Collision Coverage
Without collision coverage, you pay for your own car's repairs after an accident, so the question is how you cover that cost yourself.
You pay out of pocket, and the amount depends on how you prepare for it
If you dropped collision coverage or never carried it, repairs after an accident that's your fault, or one where the other driver can't pay, come from your own money. Your insurer won't step in for damage to your own car unless collision coverage is on the policy.
Most people in this situation rely on savings set aside for exactly this. Some use a credit card or a personal loan if the repair is larger than what they have saved. A few decide the car isn't worth repairing at all and put the money toward a different car instead. Which path makes sense depends on what the car is worth and what the repair would cost.
What the car is worth changes what repairs make sense
An older car with a lower value changes the math on repairs. If a repair costs close to what the car is worth, a mechanic or your insurer, if you still carry liability coverage with them, can tell you whether it's a total loss. That's worth asking before you commit to paying for the repair yourself.
This is also the reason a lot of people drop collision coverage in the first place. Once a car's value drops low enough, the payout from a collision claim would be small, so the coverage stops being worth its cost. If that's why you dropped it, the same reasoning applies now. Weigh the repair cost against what the car could be sold for as is.
If the car still has real value to you, whether for resale or for getting you where you need to go, it's worth getting more than one repair estimate. Body shops vary in price for the same job, and a second quote can save a meaningful amount.
Who caused the accident changes who you can ask to pay
If another driver caused the accident, their liability coverage should pay for your car's repairs, not yours. You don't need collision coverage for that. File the claim with their insurer and keep your own records of the damage and the estimates.
If you caused the accident, or you're not sure who did, there's no one else to bill. That's the situation collision coverage exists for, and without it, the repair is yours to handle.
If the other driver is uninsured or underinsured, check whether your policy has uninsured motorist property damage coverage. It's a separate coverage from collision and some states require insurers to offer it. If you have it, it may cover your repair even without collision coverage on the policy.
Questions people ask about this
Should I add collision coverage back after an accident like this?
That depends on what the car is worth now and what you can afford to lose if it happens again. If the repair this time was costly, it's worth asking your insurer for a quote on adding collision back and comparing that cost against the risk of paying out of pocket again.
Can I get a loan specifically for car repairs?
Some banks and credit unions offer personal loans for this, and some body shops have financing arrangements with lenders. Ask the shop directly what options they offer before assuming a loan isn't available.
Is it worth repairing an older car after an accident?
That depends on the repair cost compared to the car's current value. A mechanic can give you a repair estimate, and a quick search of similar cars for sale nearby can tell you what the car is worth as is.
Does liability insurance cover my own car's damage?
No. Liability coverage pays for damage you cause to someone else's car or property, not your own. Repairs to your own car after an at-fault accident require collision coverage or your own funds.
What happens if I can't afford the repair at all?
You can keep driving the car if it's still safe and legal to drive, or you can sell it as is, often to a salvage buyer if the damage is significant. Check with your state's motor vehicle agency if the damage affects whether the car can legally be driven.
If paying for this repair changed your mind about collision coverage, see what adding it back would actually cost you.
Get a written repair estimate from a body shop before you decide anything, and get a second one if the first number is high. Look up what your car is worth right now so you know whether the repair is worth paying for. If another driver was at fault, file the claim with their insurer rather than paying yourself. If you have uninsured motorist property damage coverage, ask your insurer whether it applies here. Once you know the real cost, decide whether to pay it, finance it, or let the car go.
