What should I do if my car is declared a total loss? (2024 Expert Advice)

If your car has been severely damaged, you’ll probably wonder, “What should I do if my car is declared a total loss?” The answer depends on whether you want to keep your vehicle or not.

Whether due to a serious accident or extensive damage, a “total loss” means the cost of repairs exceeds the car’s value. While this situation can be stressful, understanding the process and knowing your options can help you navigate the next steps confidently.

Whether you want to keep driving and need car insurance for a totaled car or you want to accept a payout from your company, you can get all the information you need below. If you want to keep your vehicle, you can enter your ZIP code into our free comparison tool to see affordable rates in your area.

Why Insurance Companies Declare a Car Totaled

When a vehicle is considered a total loss, it means that the cost of repairing the damages exceeds the car’s actual cash value (ACV).

In simpler terms, it’s not financially feasible to repair the vehicle and bring it back to its pre-accident condition. Insurance companies typically make this determination based on specific criteria set by state laws and their internal guidelines.

A total loss can occur due to various reasons such as severe accidents, natural disasters like floods or fires, or even theft. When any of these events happen, the damage to the vehicle can be so extensive that repairing it would cost more than what the car is currently worth. In such cases, the insurance company will declare the vehicle a total loss and compensate the policyholder accordingly.

How a Total Loss is Determined

Insurance adjusters evaluate various factors to determine whether a vehicle is a total loss. These factors include the car’s age, mileage, pre-accident condition, and the projected cost of repairs. Typically, if the repair costs exceed around 75-80% of the car’s ACV, it will be declared a total loss.

Insurance companies have specific formulas and guidelines that they use to calculate the ACV of a vehicle. This value takes into account factors such as the car’s make, model, year, condition, and market demand. It is important to note that the ACV is not the same as the purchase price or the outstanding loan balance of the vehicle. It’s also often not enough to cover the cost of a similar vehicle, which is why some drivers choose replacement cost coverage over ACV coverage, even though it costs more.

Once Your Vehicle is Declared a Total Loss

Your car is totaled – now what? Once your vehicle is declared a total loss, you enter a different phase of the claims process. Here are the steps to take after your vehicle is deemed a total loss:

• Contact Your Insurance Company: Your insurance company will provide guidance through the claims process for a totaled vehicle. Make sure to provide any requested documentation as quickly as possible to avoid payout delays.
• Vehicle Valuation: Your provider will assess your vehicle to determine its ACV, considering factors like age and mileage. It also looks at the extent of the damage done to your vehicle.
• Accept a Settlement: Once the assessment is done, your provider will offer a totaled car payout option. Make sure to read the offer carefully in case you need to negotiate a fairer payment.
• Decide What to Do: You have a car with a salvage title now, but you don’t necessarily have to give the vehicle up. You can either transfer ownership to your insurance company, sell it for parts, or repair your vehicle.
• Get a New Car: With the settlement amount received from the insurance company, you can start looking for a replacement vehicle that suits your needs and preferences.

Dealing with a total loss can be a challenging and overwhelming experience. However, understanding the concept and the steps involved in the process can help you navigate through it more effectively and ensure you receive a fair settlement for your loss.

Enter your ZIP code below to compare cheap insurance rates.

Auto Home Health Life Business Motorcycle Pet Medicare Rental

 Secured with SHA-256 Encryption

How to Recover a Total Loss Car

If you decide you want to keep your car instead of letting your insurance company take it, you’ll need to do a few things before you can drive it again.

When your car is totaled, your vehicle’s title will be reissued as a salvage title. A vehicle with a salvage title cannot be driven on public streets, and you won’t be able to buy an auto insurance policy for it.

To drive your car after being declared a total loss, you’ll need to get any damage to your vehicle repaired. After repairs are made, your car will need to be inspected by your local DMV. Once all criteria are met, you’ll get a rebuilt title.

How to Insure a Car With a Rebuilt Title

For car insurance, there’s a significant difference between a salvage title vs. a rebuilt title. You can’t buy insurance for a salvage title car, but it’s usually easy to get a policy for a rebuilt title.

To buy auto insurance for rebuilt title cars, you’ll need to go through the same process as a standard vehicle. Some insurance companies won’t work with a rebuilt car, but most major providers will.

However, you’ll probably pay more for insurance for a rebuilt title car than you would for a car with a clean title. Take a look below to compare average rates.

Car Insurance Rates: Clean vs. Rebuilt Titles by Age

To get the best insurance for rebuilt title cars, you’ll need to compare rates with multiple companies. You can get a personalized quote by filling out the request form found on the websites of most insurance companies.

Alternatively, you can use a quote-generating tool online to compare multiple quotes at once to save time and effort.

Steps to Take After Your Vehicle is Deemed a Total Loss

Whether you’re wondering if you can still drive a total loss car or want to get rid of your old vehicle entirely, the steps listed above will help you navigate the process of totaling your vehicle. In case you’re still confused, we’ve gone into greater detail of each step below.

Contact Your Insurance Company

The first thing you should do is contact your insurance company to initiate the claims process. Provide them with accurate details about the accident and any injuries sustained. The insurance company will assign a claims adjuster who will guide you through the subsequent steps.

Once you’ve made the call, you may have some questions or concerns about the process. Don’t hesitate to ask your insurance representative for clarification. They are there to help you navigate through this challenging situation.

It’s important to note that the claims process can vary depending on your insurance provider and the specific details of your policy. Your insurance company will provide you with a clear outline of the steps you need to take and the information they require.

Understanding Your Insurance Policy

It’s important to thoroughly review your auto insurance policy to understand the coverage you have in the event of a total loss. Familiarize yourself with terms such as ACV (Actual Cash Value), deductible, and any additional coverages that may apply. This will help you have a clear understanding of what to expect in terms of compensation.

If you have any doubts or confusion about the terms in your policy, don’t hesitate to reach out to your insurance company for clarification. It’s better to have a thorough understanding of your coverage to ensure you receive the compensation you’re entitled to.

Keep in mind that insurance policies can be complex documents, filled with legal jargon. Take your time to read through it carefully, and if needed, seek assistance from a professional who can help you interpret the terms and conditions.

Decide What to Do With Your Car

When you have a totaled car, you may think your only option is to let your insurance company take it off your hands. However, that’s not the only thing you can do with a totaled car. Watch the video below to explore your options.

If you want to drive your totaled car again, you’ll need to get your salvage title updated to a rebuilt one. Then, you’ll have to find auto insurance for a salvage car, which can be a bit more difficult. However, there’s no reason you have to give up your car if you have the time and budget to repair it.

Negotiating a Settlement

Insurance companies often make an initial settlement offer based on their assessment of your vehicle’s value. However, it’s essential to remember that their offer is negotiable. Research your vehicle’s market value and gather evidence supporting your claim for a higher settlement. This might include recent listings for similar vehicles and documentation of any recent repairs or upgrades.

Remember, the goal of negotiation is to reach a fair settlement that compensates you adequately for your loss. It’s important to be patient and persistent throughout the process. If you feel overwhelmed or unsure about the negotiation process, consider seeking advice from a legal professional or a public adjuster who can advocate on your behalf.

Dealing with the aftermath of a total loss can be overwhelming. Here are some tips to help you through this challenging period:

• Self Care: A total loss accident can be emotionally and physically draining. Make sure to prioritize your well-being and seek support from friends, family, or a therapist if needed.
• Alternative Transportation: When your vehicle is declared a total loss, you’ll need a new way to get around. Getting car insurance with rental car reimbursement coverage makes it easy to get a temporary ride while you wait for your payout.
• Keep Documentation: Make sure to keep all documents related to your vehicle and an accident handy, including police reports, medical records, repair receipts, and communication from your insurance.
• Research Replacement Options: If you want to buy a new vehicle, start researching your options. You likely won’t get a payout large enough to replace your totaled car with the same make and model, so you’ll need to find a vehicle that fits your budget.

Remember, the process of dealing with a total loss can be lengthy and complex. It’s important to stay informed, ask questions, and seek guidance when needed. With patience and persistence, you can navigate through this challenging period and come out with a fair settlement that allows you to move forward.

How to Avoid Totaling Your Car

While there’s not much you can do after your current car is declared a total loss, there are steps you can take to minimize your future risk of totaling a vehicle. From getting low cost car insurance with driver discounts to maintaining your vehicle, use the tips below to keep your car safe.

Regular Vehicle Maintenance

Adhering to a regular maintenance schedule can significantly improve your vehicle’s reliability and safety. Regular oil changes, tire rotation, brake inspection, and other routine maintenance tasks can detect and address issues before they become major problems that could lead to a total loss.

Drive Safe

Practicing safe driving habits is crucial in preventing accidents that could result in a total loss. Avoid distractions, follow traffic rules, maintain a safe distance from other vehicles, and never drive under the influence of alcohol or drugs. Additionally, consider taking defensive driving courses to further enhance your skills on the road.

Choosing the Right Insurance Coverage

When selecting an auto insurance policy, ensure you have adequate coverage to protect you in the event of a total loss. Review your policy’s collision and comprehensive coverage limits and consider additional coverage options such as gap insurance, which covers the difference between the ACV and the remaining loan balance.

By understanding what to do if your vehicle is deemed a total loss, you can navigate through the process more effectively. Remember, keep calm, gather all necessary information, and work closely with your insurance company to reach a fair settlement.

Gap Insurance

One of the best ways to help protect yourself from the financial strain of your car being declared a total loss is to get gap insurance. The best gap car insurance ensures you won’t be stuck paying a loan or lease on a car you no longer drive.

While many companies offer gap coverage, some offer loan/lease insurance instead. Loan/lease insurance works similarly to gap insurance and will cover any upside loan you have.

Enter your ZIP code below to compare cheap insurance rates.

Auto Home Health Life Business Motorcycle Pet Medicare Rental

 Secured with SHA-256 Encryption

Deal With a Totaled Car Today

Whether you want to turn in a totaled car or find the best auto insurance companies that will sell you an online policy for a salvage title vehicle, figuring out what to do after your car is totaled can be stressful. Luckily, you don’t have to do it alone – an insurance representative will always be ready to help.

Now that you know how to deal with a car that has been declared a total loss, you’ll probably need insurance for either a new car or a vehicle with a salvage title. When you’re ready to see the cheapest rates in your area, enter your ZIP code into our free comparison tool above.

Enter your ZIP code below to compare cheap insurance rates.

Auto Home Health Life Business Motorcycle Pet Medicare Rental

 Secured with SHA-256 Encryption