After a total loss designation, the car is usually taken by your insurance company, which then notifies the DMV that the car has been totaled. Depending on the state, the car will be declared “salvage,” and any buyers who specialize in salvaging vehicles can purchase the car from the company.

Can you keep your car if it is a total loss?

A car is considered a total loss, or “totaled,” if the cost of repairing it after an accident is more than the value of the vehicle. You can choose to keep a total loss vehicle instead if you want to repair it or salvage its parts on your own.

What happens when your car is declared a total loss?

After the accident, you have to call your insurance company. The insurance provider will assess whether the damages sustained are repairable or your car is a total loss. A vehicle is declared a total loss when the cost of repairs exceeds the car’s value, or when the car cannot be restored to a condition where driving it can be considered safe.

What should I do if my car is totaled?

Give your car title and keys to the insurance company. If you are unable to find the title to your car, contact your local DMV office. When the insurance company comes to pick up your car, you may need to sign a document that acknowledges their right to take your car.

When does an insurer have to pay for damage to a car?

Unfortunately, an insurer is only required to pay damages up to the fair market value of the destroyed property, even if you owe more than the car’s value on your car loan. Let’s look at an example of how this happens.

What do I need to prove my car is worth more than what the insurer said?

You will need hard evidence that the car was worth more than what the insurer said it was worth. You will need two types of evidence: evidence as to exactly what type of shape the car was in, and evidence as to the car’s actual value. The best way to prove the car’s actual condition is reasonably current photographs of the car.