 TITLE: What Happens if Your Car Is Totaled? CONTENT: How Can a Totaled Car Affect Your Credit Scores?\n------------------------------------------------\nCar accidents, even those that result in a financed car being totaled, won't directly impact your credit scores. Credit scores are based solely on the information in your credit report and don't include things like your driving record or previous insurance claims.\nTo make certain your credit stays unscathed, work closely with your insurer and your lender to make sure the loan covering the vehicle is properly paid off and closed. Your financial obligation to make your car payments doesn't go away until the loan balance reaches $0, whether that's because your insurer reimbursed the lender, or you've paid off what was left over after their contribution.\nWhile an accident won't harm your credit scores, it can affect your auto insurance premium, even if your car is totaled after an accident. You might be able to avoid this if you qualify for accident forgiveness coverage, but that benefit isn't available in every state or from every insurer. Insurance companies that do offer it include Allstate, American Family, Geico, Liberty Mutual, Nationwide, Progressive, The Hartford, Travelers and USAA. END