Can I keep my car if the insurance company totals it? (2024)
You can keep your car if the insurance company totals it and your state allows you to keep it with a salvage title. In most states, the total loss threshold is between 70% and 75% of the car's actual cash value. Check out our guide below if you've thought, "My insurance totaled my car, but I want to keep it."
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Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Insurance Agent
UPDATED: Dec 23, 2024
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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Dec 23, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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If my car is totaled, can I keep it? You can keep your car if the insurance company totals it and your state laws allow you to keep it with a salvage title.
However, your state may not allow you to drive or sell vehicles with salvage titles. You’ll also get a smaller insurance payout since your insurer will subtract the car’s salvage value.
So, if you’re wondering, “Can I keep a totaled car?” we’ll explain this and more below. If you’re looking to get cheap car insurance, enter your ZIP code into our free quote tool to instantly compare rates from the best auto insurance companies near you.
- Most states allow you to keep your totaled car, but laws vary
- State laws may restrict your ability to drive or sell a totaled vehicle
- You’ll get less money from your insurer if you keep your totaled car
How to Keep Your Car After Being Totaled
When insurance totals your car, can you keep it? In many states, the owner of a totaled vehicle can retain the car, but they are usually required to obtain a new title. However, some states have laws restricting what owners can do with vehicles with a salvage title.
For example, driving a salvage vehicle on public roads may not be legal. Most insurance companies may not even offer coverage for salvage vehicles.
Read More: Best Auto Insurance Companies That Take Salvage Titles
In some states, you can get the car retitled after making repairs. In other states, the only thing you can do with a salvage vehicle is to sell it or use it for parts, while some laws won’t allow you to retain a salvage vehicle for any purpose.
You’ll be responsible for obtaining a salvage title if the laws of your state require it.
If you’re thinking about keeping your car, talk to your insurance company or another professional who knows the laws in your state first. Otherwise, you may find out you can’t legally use the car for your intended purpose or that the legal hoops you have to jump through to keep the car may not be worth the trouble.
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Why You Might Want to Keep a Totaled Car
So, can you keep your totaled car, and why might someone want to? Yes, some states will allow you to keep your totaled car with a salvage title.
There are three main reasons you may want to keep your totaled car:
- You want to fix it. If you don’t think you can purchase a comparable vehicle with the money from your total loss settlement, you may prefer to keep your totaled car and get it fixed. In this case, you can transfer from a salvage title to a rebuilt title. (Read More: Cheap Rebuilt Title Auto Insurance)
- You want to sell it for parts. If you think you can get more money out of your totaled vehicle by selling it for parts yourself, you may want to keep it instead of accepting what the insurance company says the salvage value is.
- Your car has sentimental value. Some people love their cars. If you are one of these people, the sentimental value of the car may be worth more to you than the financial value.
If any of these reasons apply to you, compare the value of keeping your car versus the cost of not keeping it. Keeping the totaled car may cost more than you think to repair the damage, and if you intend to part the car out, you may not get as much money selling the parts as you anticipate. It is important to consider these factors before you decide to keep your vehicle. Find out what the insurance company does with your totaled car.
How the Total Loss Claims Process Works
Most insurance contracts specifically state that the maximum amount the company will pay for a physical damage car insurance claim is the vehicle’s actual cash value, minus your deductible. Therefore, if the damage to your vehicle exceeds this amount, the insurance company is not obligated to pay the additional cost. To calculate the value of a totaled car, car insurance companies use a totaled car value calculator.
So, can you keep a totaled car? Yes, when a vehicle is totaled and you want to keep it, your insurance company will offer you a settlement minus the car’s salvage value. The salvage value is what your car is worth after it’s been totaled.
Some states have a total loss threshold, meaning if the cost to repair a vehicle exceeds a certain percentage of the car’s value, it’s a total loss. Generally, most states consider damaged vehicles a total loss when the cost to repair the damage exceeds 70% of the average retail value of the vehicle.
Hover over your state below to see its total loss threshold percentage:
Once the insurance company has determined that your vehicle is a total loss, it will offer you a settlement amount based on the vehicle’s actual cash value. Find out how insurance companies determine car value.
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If you accept the offer, the insurance company will ask you to complete paperwork that confirms your acceptance of the settlement and transfers ownership of the salvage vehicle to the insurance company. If you decide to keep your totaled vehicle, you are only entitled to the difference between the current value of your wrecked vehicle and the pre-loss value of the vehicle.
Find cheap auto insurance for salvage vehicles by comparing quotes.
What to Do If You Disagree With Your Insurer’s Settlement Offer
Most insurance companies are willing to negotiate total loss settlements. However, if you think your car is worth substantially more than the insurance company has offered, you need to provide supporting documentation to substantiate the value you are asking for.
Learn More: What is a fair settlement for an auto accident?
Examples of documentation that may help your case include receipts for any aftermarket equipment you have installed and sales records for similar vehicles in your geographic region.
If you can’t reach an agreement with the insurer, you may need to consider if the matter is worth pursuing in court. Additionally, if you are dealing with your own insurance company, there may be an arbitration clause in the contract that applies.
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Keeping Your Totaled Vehicle: The Bottom Line
So, if a car is totaled, can you keep it? You have the right to keep your car after the insurance company totals it if the laws of your state permit it and you think it makes sense for you to do so. However, because of the potential consequences, it is important to weigh the advantages and disadvantages before making your final decision.
If you’re looking to get affordable coverage for your salvage car, use our free quote comparison tool below to find the cheapest auto insurance companies for you.
Frequently Asked Questions
What does it mean when an insurance company totals a car?
When an insurance company determines that the cost of repairing a damaged vehicle exceeds its actual cash value, they may declare it a “total loss” or “totaled.” This means that the insurer will pay you the pre-determined actual cash value of the car, minus any deductible, rather than covering the cost of repairs.
Read More: Replacement Cost vs. Actual Cash Value
So, can I keep my car if insurance totals it? If your state allows it, you can keep your totaled car with a salvage title. However, you’ll get a smaller insurance payout since your insurer will deduct the car’s salvage value from it.
What can I do if my insurance wants to total my car but I want to keep it?
You may wonder, “If insurance totals a car, can I keep it?” If your insurance company wants to declare your car a total loss (often referred to as “totaled”) but you want to keep it, here are your options:
- Negotiate with the insurance company. You can negotiate with your insurance company to keep your car and receive a settlement for the actual cash value (ACV) of the car minus its salvage value. Salvage value is the amount the insurance company could get for selling the damaged car to a salvage yard.
- Buy your vehicle back. In some cases, the insurance company might allow you to buy back your car from them at its salvage value. This means you keep the car, but the insurance company deducts the salvage value from your settlement.
- Repair the car yourself. If you decide to keep the car, you’ll likely need to repair it yourself. Keep in mind that depending on the extent of the damage, repairing the car may not be cost-effective. It’s essential to have the car thoroughly inspected by a qualified mechanic to assess the extent of the damage and the cost of repairs.
- Consider title retention. When a car is declared a total loss, the insurance company typically obtains the car’s title. However, you may be able to retain the title if you wish to keep the car. This varies by state and insurance company, so you’ll need to check the specific regulations and policies.
- Calculate the value and risk. Remember that a car that has been declared a total loss will have a salvage title, which can affect its resale value and insurability in the future. It’s essential to consider these factors before deciding to keep the car.
Before making any decisions, it’s important to consult with your insurance company to understand their specific policies and procedures regarding totaled vehicles. Also, you should get multiple quotes for repair costs to determine if keeping the car is even a financially feasible option for you.
If a car is totaled, can you keep it?
Many readers ask, “If your car is totaled, can you keep it?” In many cases, yes, you can keep your car even if the insurance company declares it a total loss. However, the insurance payout you receive will be reduced by the salvage value of the vehicle, which is the estimated value of the car in its damaged state.
What is the salvage value of a totaled car?
The salvage value represents the estimated worth of the damaged vehicle in its current condition. Insurance companies often work with salvage yards or auto auction companies to determine the salvage value, which can vary depending on factors such as the extent of damage, make and model of the car, and regional market conditions. Learn more about how to compare auto insurance rates by vehicle make and model.
So can you keep your car after insurance totals it? Yes, many states allow you to keep a totaled car with a salvage title. However, you’ll receive a smaller insurance payout. In addition, many states have restrictions on driving and selling cars with salvage titles.
How is the insurance payout determined if I keep my totaled car?
If you choose to keep your totaled car, the insurance company will deduct the salvage value from the total loss payout. The remaining amount is what you will receive as compensation. It’s important to note that the salvage value can vary, and it’s advisable to negotiate this amount with your insurance provider if you feel it is not fair.
What are the pros and cons of keeping a totaled car?
Pros of keeping a totaled car include the potential to repair it yourself or sell it for parts, sentimental value attached to the vehicle, or the ability to drive it if the damage is cosmetic. However, cons include the need for repairs, potential safety concerns, and difficulties in obtaining insurance coverage or reselling the vehicle with a salvage title.
So, can you keep your car if insurance totals it? Some states will allow you to keep it, but you’ll have to get a salvage title.
Can I still drive my car if it has been declared a total loss?
If your car has been declared a total loss, you may still be able to drive it if the damage is primarily cosmetic or non-essential to its operation. However, you should check with your local Department of Motor Vehicles (DMV) or relevant authorities to ensure compliance with any laws or regulations regarding roadworthiness and salvage vehicles in your jurisdiction.
So can you keep a car after it is totaled? Some states may allow you to keep it, but you’ll need to get salvage title and there may be restrictions on driving and selling it.
If my vehicle is totaled, can I keep it even if I still owe money on it?
If insurance totals your car, can you keep it even if you still owe money on it? In some states, you can keep your totaled car even if you owe money on it, but you’ll need a salvage title. If you still owe money on your wrecked vehicle, the insurance company will pay the value of your total loss settlement to your lender.
If the settlement exceeds the amount that you owe, the lender will reimburse the difference to you. If you still owe money, you must finish paying off the car unless you have gap insurance.
Can you keep a totaled car in Missouri?
Missouri drivers might ask, “When a car is totaled, can you keep it in Missouri?” Yes, however, you’ll need to get a salvage title, and you’ll receive a smaller insurance settlement. In addition, Missouri auto insurance laws may require repairs and inspections before you can drive it.
Can you keep a totaled car in Florida?
If my car is deemed a total loss, can I keep it in Florida? Yes, you can keep your totaled car in Florida if you get a salvage title from the Florida Department of Highway Safety and Motor Vehicles.
However, you’ll receive a smaller insurance payout since the insurer will deduct the car’s salvage value from it. In addition, your car will likely need to undergo repairs and inspections to ensure it’s roadworthy.
Read More: Florida Auto Insurance
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
