1. The insurance company could drag its feet in investigating the injury claim and accepting responsibility. (Typical)
2. The person at fault may not report the accident to their insurance company.
3. The person at fault may not have coverage for the damage that they caused you. If so, you may have to file an injury claim under your own auto insurance policy. If you do not have full coverage, you may have no way to make any recovery. This is why all auto owners should always add Uninsured and Under Insured Motorist (UM/UIM) protection coverage, as well as Personal Injury Protection (PIP) coverage, when they buy their auto insurance.
4. Your vehicle could cost more to repair than it is worth, and you may have to obtain a new vehicle.
5. You may have paid too much for your car, including the sales price and financing costs, and if your car is a total loss, you may become “upside down” in the value of the vehicle versus the loan amount due. In other words, you may end up with no car, but with an obligation to continue paying for it anyway. There is a type of insurance coverage, called Guaranteed Auto Protection (GAP) insurance for situations like this. This is good protection to get when you buy a new car.
6. You may not own the car yet, and your bank or car dealer may repossess the title if the payments are not current.