Imagine this: you get into an accident, but your car is still running fine. It may have some dents, broken lights, or airbag deployment, but overall, it drives just like before. However, your insurance company calls and tells you the car is “totaled.” What does that even mean? Can you still drive it? Should you keep it or let the insurance company take it?
Many drivers face this situation and are unsure what to do next. This guide will walk you through everything you need to know when your car is totaled but still drivable.
What Does “Totaled” Mean?
A car is declared “totaled” when the cost to repair it exceeds a certain percentage of its actual cash value (ACV). This percentage varies by state and insurance company but is typically around 70% to 80% of the car’s value.
How Do Insurance Companies Determine If a Car Is Totaled?
Insurance companies consider:
- Repair Costs – If fixing the car costs more than the ACV, it’s declared totaled.
- Salvage Value – The estimated value of the car’s parts after it’s totaled.
- State-Specific Thresholds – Some states have strict guidelines on when a car must be totaled.
For example, if your car is worth $10,000 and the repairs cost $7,500, it might be considered totaled depending on your insurance provider’s threshold.
Can you drive around a totaled car?
Yes, but with conditions. Even if the damage is mostly cosmetic and the car runs fine, once the insurance company declares it totaled, certain legal and insurance restrictions come into play.
Legal and Safety Concerns
- Salvage Title – A totaled car will often receive a salvage title, which means it is no longer roadworthy in most states until it is repaired and inspected.
- State Regulations – Some states prohibit driving a salvage-titled car without re-inspection.
- Hidden Damage – Even if the car seems fine, structural damage could make it unsafe.
Insurance Considerations
- Some insurers may refuse to cover a totaled vehicle.
- You might need a special policy for a salvage or rebuilt title car.
- Expect higher premiums if you continue driving a totaled car.
What to Do If Your Car Is Totaled but Drivable
Step 1: Review Your Insurance Settlement Options
- Accept the Payout – You receive the car’s ACV minus your deductible, and the insurance company takes the car.
- Keep the Car – The insurance company will deduct the car’s salvage value from your payout, and you keep the vehicle.
Step 2: Get a Salvage or Rebuilt Title
- A salvage title means the car is considered a total loss.
- To legally drive it again, you need to repair the car and apply for a rebuilt title after a state inspection.
Step 3: Consider Future Costs
- Higher Insurance Premiums – Insuring a rebuilt title car can be expensive.
- Limited Coverage – Some insurers only offer liability coverage, not full coverage.
- Resale Issues – A salvage title significantly lowers the car’s value.
State Laws and Regulations Regarding Totaled Cars
Every state has different laws about driving, repairing, and insuring a totaled vehicle.
- Some states require mandatory inspections before re-registering a rebuilt car.
- Others may have restrictions on who can repair salvage cars.
- Some states ban totaled cars from being driven at all until they pass specific safety checks.
Check your local DMV for specific rules in your state.
Should You Keep and Repair a Totaled Car?
Pros:
✅ Cheaper than buying a new car – If repairs are minimal, keeping the car could be cost-effective.
✅ Familiar vehicle – You already know the car’s history and condition.
✅ Buyback Option – Some insurers allow you to buy the totaled car at a reduced price.
Cons:
❌ Lower Resale Value – A salvage title significantly reduces resale and trade-in value.
❌ Insurance Challenges – Higher premiums and limited coverage options.
❌ Potential Safety Issues – Structural damage may not be visible but could affect performance and safety.
How Insurance Companies Handle Totaled but Drivable Cars
When your car is declared totaled:
- The insurer will offer a settlement amount based on the car’s ACV.
- If you want to keep the car, the insurer deducts the salvage value from the payout.
- The car is issued a salvage title, meaning it is considered unfit for the road.
To drive it again legally, you’ll need to:
- Make repairs
- Pass a state inspection
- Apply for a rebuilt title
How to get the most money from insurance for a totaled car?
Find your own comparable vehicles and send them to the adjuster. A good place to start are websites like Kelley Blue Book, Autotrader.com, Cars.com, and Carfax.com. Hiring an independent appraiser may also be helpful. An appraiser can serve as an expert on your car’s value.
Final Thoughts
If your car is totaled but still drivable, you have options. You can:
- Accept the Insurance Payout and get a replacement car.
- Keep the Car, Repair It, and Get a Rebuilt Title if the damage is minor.
- Sell the Totaled Car to a salvage yard or private buyer.
Each choice comes with risks and benefits, so weigh them carefully based on your situation.
FAQs
1. Can I drive a totaled car without repairing it?
No, most states require you to repair and re-register a totaled car before driving it legally.
2. How much will insurance pay for my totaled car?
Insurance companies pay the actual cash value (ACV) of the car before the accident, minus your deductible.
3. Can I buy back my totaled car from the insurance company?
Yes, you can often buy it back at its salvage value, but it will have a salvage title.
4. Will my insurance be higher if I keep a totaled car?
Yes, salvage or rebuilt title cars typically have higher insurance rates.
5. Can I sell a totaled car?
Yes, but with a salvage title, the car’s value will be significantly lower.
