- What happens when your car is totaled?
- What happens when your car is totaled but still drivable?
- What to do when your car is totaled
- How do insurance companies decide if a 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
- When a car is totaled what happens to the title?
- What to do after a total loss settlement
- FAQ: What happens when your car is totaled
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 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. The insurance company will subtract the salvage value of the car from the settlement, and you can keep it. But there are things you should know.
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, but it needs to be roadworthy to be registered and insured. A totaled car will often have a salvage title, which can make it harder to get insurance.
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 to do when your car is totaled
When your car is totaled, you have a few options. Compare them below.
| Option | How it works | Pros | Cons | When to consider it |
|---|---|---|---|---|
| Accept the payout | You take the insurer's offer based on ACV, minus the deductible, and the insurer takes possession of the car. | -Quick -Straightforward -Get a new car faster | -You may not get enough to buy the car you want | -The settlement is fair -You need a car fast |
| Appeal the settlement | Follow the appeals process and provide documentation of value, including mileage, condition, and comparable vehicles | -Potential for a larger settlement -Ability to buy a better car | -Takes time -May not be successful | -The settlement is too low -You're willing to wait for more |
| Keep your car | The insurance company subtracts the salvage value from your settlement and you keep the car, which you can repair, sell, donate, or possibly trade in. | -You may get more money by parting it out or reselling it -Potential to sell it for a tax deduction | -Lower resale value on salvage vehicles -Cost to repair -Hard to insure | -The damage is cosmetic -You can repair it -You don't need to buy another vehicle |
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.
How do insurance companies decide if a car is totaled?
As a general rule, your car will be totaled by the insurance company if the cost of repairs is higher than the actual cash value 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 the sensors, cameras and computers in today's vehicles, what looks like minor damage could 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 valueActual Cash Value (ACV) is the current market value of your car, considering depreciation. It's the amount your insurance will pay if your car is totaled or stolen., or 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 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.
Will insurance pay off my loan if my car is financed?
Insurance doesn't pay off your car loan, it pays the actual cash value of your car. That may be more or less than what you owe on your car.
If your car insurance settlement is less than the loan balance, you are responsible for paying it off. If you have gap insurance, it will cover the difference.
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 adjusterAn adjuster handles claims for the insurance company. They assess the damage and determine how your coverage applies to damages and injuries. 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.
When a car is totaled what happens to the title?
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.
What to do after a total loss settlement
After your total loss 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. is settled, you will need to do a few things, and some of them relatively quickly.
- Return a rental car, if you have one. Insurance will only pay for a rental car for a certain period of time. The rental car is there to help you get around while your claim is being settled and you look for a new car. Ask your insurance adjuster when your rental car has to be returned, and follow the timeline to avoid extra charges.
- Buy a new car. It's a good idea to start looking for a new car as soon as you know your car is a total loss. Even if you can't buy one until you get the check, you'll know what the market looks like and what you can expect to pay.
- Settle any outstanding loans or payments. If your insurance didn't fully cover your loan, you will need to settle the balance.
Got a question about insurance? Our verified experts are here to help.
Verified expert advice and trusted by 50,000+ usersSources :
- Kelley Blue Book. “Totaled Car: Everything You Need to Know.” Accessed August 2025.
FAQ: What happens when your car is totaled
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 or rebuilt 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.
What happens when your car is totaled and you still owe money?
You are responsible for any loan balance remaining after the insurance payout. Insurance will pay the actual cash value of your car, which may be less than you owe. If you have gap insurance, it will cover the difference. If not, you will need to pay the difference out of pocket.
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