- What happens when your car is totaled?
- What to do when your car is totaled
- What happens when your car is totaled but still drivable?
- What happens when your car is totaled and you still owe money?
- How do you determine if your car is totaled?
- How much will insurance pay for my totaled car?
- How long does it take to get the insurance check for a totaled car?
- Who gets the insurance check when a car is totaled?
- How to get the most money from insurance for a totaled car
- What happens to the title when a car is totaled?
- What happens when your car is totaled: FAQs
What happens when your car is totaled?
When your car is totaled after an accident, it means the insurance company has determined that repair costs are too high to make the vehicle worth repairing.
Here's what the process looks like:
- Insurance adjuster assessment. The insurance adjuster examines the damage and prices out the repairs and the value of the car. The value is based on the fair market value of the car before the damage.
- Declaration of total loss. If the repair costs are more than the fair market value, the adjuster will declare it a total loss and issue a notice of total loss.
- Settlement offer. Your insurance company drafts a settlement offer based on the value of the car and sends out a check. If you own the car, the check will be made out to you. If it's financed, the check likely be made out to you and the lender, requiring you to endorse it and then have the lender endorse it.
- Acceptance or negotiation. You can either accept the settlement or negotiate for a larger amount. Once you've decided to accept the amount offered, the claim will be closed.
- Transfer of ownership. Once your loan has been satisfied, whether entirely by insurance or with additional payment by you on the balance, the ownership of the car will be transferred to the insurance company. This may differ if you decide to keep the car, but in most cases the insurance company takes ownership and sends the car to a salvage yard.
What to do when your car is totaled
When your car is totaled, you have a few options:
Take the payout.
If you feel that the settlement offered by your insurance company is fair, you can accept the payout. If your car is financed, the check will go to your lender directly. If it's paid off, you'll get the check. Either way, the insurance company will take your deductibleThe deductible is the amount you pay out of pocket for a covered loss when you file a claim. out of the total. The deductible you pay depends on whether the claimAn insurance claim is a request you make to your insurance company for coverage after your car is damaged or you have an accident. You can file a claim online, by phone, or in writing. was covered by comprehensive or collision coverageCollision coverage helps pay for repairs or replacement of your car if it's damaged in an accident, regardless of who is at fault and is subject to a deductible., although most people carry the same deductible amount for both.
You'll then transfer ownership of the vehicle to the insurer, which will sell it for salvage.
Appeal the settlement.
If you aren't happy with the insurer's offer and believe your car is worth more than the insurance company has calculated, you have the right to appeal the decision.
To get more for your car, be prepared to show why its value is higher than the settlement offer. This may include documentation of the condition, upgrades and mileage on the vehicle and proof of the market value of a car like yours.
Keep your salvaged car.
Some states will allow you to keep the car. The salvage value of the car (what the insurance company would get from selling it to a salvage yard) will be deducted from your settlement check. If you choose to keep it, you can:
- Sell it to a junkyard. Most junkyards will buy salvaged cars for scrap metal. The upside is they will also usually transport it for you.
- Trade it in. Some dealerships will accept trade-ins with a salvage title, though you're not going to get the best amount for it.
- Repair it yourself. If you want to keep your car, you can repair it yourself. If the damage is mainly cosmetic, like hail damage, it may not even need repairs. However, insurance costs for a salvage title are usually higher.
- Donate it to charity. If all else fails, you could donate the vehicle to charity and claim a tax credit. Charities accept donations of cars even if they aren’t drivable.
People ask
What happens if my car was totaled in an accident that wasn't my fault?
If someone else was at fault for the damages that caused your car to be totaled, their insurance company will pay the totaled car's value.
What happens when your car is totaled but still drivable?
If your totaled car is still drivable, you might be able to keep it, depending on what the law says in your state.
If you have this option and exercise it, you will likely receive a check from your insurer for the car’s value minus its salvage value. This is the amount of money the insurance company would receive if it sold the vehicle to a salvage yard.
However, vehicles in this situation typically have a salvage or branded title. That means that getting insurance for the vehicle or trying to sell it could be challenging.
What if insurance wants to total my car but I want to keep it?
In most states, you can keep your car after it has been totaled. In that case, the insurance company will subtract the salvage value of the car from the settlement, and you can keep it. It's important to be aware that keeping a totaled car can present challenges.
First, if you want to drive it, you will need to repair and insure it. In some cases, such as hail damage, repairs may not be necessary. However, you will still need to make sure it's roadworthy so you can register and insure it. A totaled car will often have a salvage title, which can make it harder to get insurance.
You can also choose to sell your car for salvage yourself or part it out, but this may be more effort than it's worth.
People ask
Why do insurance companies total cars with little damage?
Cars have become more complex, with sensors, cameras and computer systems throughout, which means that a small accident can sometimes do very expensive damage, even if it doesn't look that bad.
What happens when your car is totaled and you still owe money?
If your insurance policy covers the damage to your vehicle, the check you receive will likely be in an amount that reflects your vehicle's current fair value. This may or may not be enough to help you pay off the car loan completely.
If your auto insurance does not cover the type of event that caused your vehicle to be totaled — or if your car's value is lower than the amount left on your car loan — you will be responsible for paying off the balance of your loan, even if the vehicle was declared a total loss.
How do you determine if your car is totaled?
As a general rule, you can assume your car is totaled if the cost of repairs is higher than the fair market valueThe price at which property would change hands between a willing buyer and a willing seller, where both parties have reasonable knowledge of the relevant facts and neither party is under any compulsion to buy or sell. of the car. You can't tell if a car is totaled just by looking at it - at least not all the time. There are some cases where it's obvious, but with the complexity of today's cars, it may not be.
Due to sensors, cameras and computers that fill today's vehicles, even what looks like minor damage could turn out to be a very expensive fix. To know for sure, you will need an estimate for repairs from an expert.
How much will insurance pay for my totaled car?
Insurance will pay the actual cash value, or fair market value, of your car. That's how much a car like yours, in the condition it was in before the loss, would sell for on the open market.
Some companies offer new car replacement or similar endorsements that provide you with enough to buy the same car new; you have to pay more for the coverage, and it generally only applies when the car is one or two years old.
How long does it take to get the insurance check for a totaled car?
Most companies will issue payment within a few days of finalizing the actual cash value amount. However, how long it will actually take depends on the insurance company. Some insurers may take just a few days, while others may take up to 30 days. Some states have requirements limiting insurance companies' time to process claims, ensuring you get your payout faster.
People ask
What can I do if insurance is not paying enough for my totaled car?
You have the right to appeal an insurance settlement on a totaled vehicle if you think it's too low. Ask your adjuster what the process is with your car insurance company. You may need to provide an appraisal.
Who gets the insurance check when a car is totaled?
Who gets the insurance check after a total loss depends on who owns it; that is, whether you have a loan or lease or own the car outright. Here are the options:
- You own the car. If you own the car with no loan, you get the check directly.
- You have a loan. If you have financed the car, the check will likely be sent directly to the lender, or it may be sent to you (or the lender) but written to both the lender and you. In that case, you will need to endorse the check and send it to the lender, which will take the funds to pay off the loan and send you any extra.
- You leased the car. As with a loan, the insurance payout goes directly to the leasing company, which owns the vehicle. Again, you may need to endorse the check.
How to get the most money from insurance for a totaled car
To get the biggest check possible for your totaled car, you want to make sure your insurer understands its real value. Consider getting written quotes from local car dealers who can state how much money the make, model and year of your vehicle would likely command in the used-car market.
Also, remember to remind your insurer about any special features or custom parts that would boost your car's value.
Present all this information to your insurer either before the adjuster arrives or after you receive a settlement amount that you feel is low.
What happens to the title when a car is totaled?
The title is usually transferred to the insurance company. The company will then sell the totaled vehicle for its salvage value. If the car is no longer drivable, it will likely be parted out, but if it can be driven the title may be branded as "salvage."
The same thing will happen to the title if you decide to keep your car after it has been totaled. A car with a salvage title can be more difficult to insure.
People ask
Is it better to have a car totaled or repaired?
It really depends on the type of damage. Some damage can't be repaired to the point where the car is safe to drive. And any time the cost to repair exceeds the cost of the vehicle, the insurance company will total it whether you want to repair it or not. Even if you keep it and repair it, the car was still totaled.
ASK AN EXPERT Have a question about the total loss process? Ask our experts here.Expert answers to your questions
Leslie Kasperowicz
Executive editor.
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Sources :
- Kelley Blue Book. “Totaled Car: Everything You Need to Know.” Accessed April 2025.
What happens when your car is totaled: FAQs
Can you sell a totaled car that still runs?
Yes, but there may be restrictions. The car may not be insurable, so you may only be able to sell it for parts. A car with a salvage title is worth less, so you may not get much for it.
What happens to registration when a car is totaled?
If you want to keep driving your totaled car, it will first need to be repaired and pass an inspection to ensure it is roadworthy. At that point, you will likely receive a rebuilt or salvage title, and you will need to take the title and proof of inspection to your local Department of Motor Vehicle so you can register the car.
What happens if a leased car is totaled?
The insurance policy will pay out the car's value. That amount is first used to cover any outstanding lease payments. Typically, money is still owed to the lease company.
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