Can you keep a totaled car?

The truth about 'totaled' cars: How to keep yours

Car accident? Tough break. Even tougher when your insurer deems it a total loss and suggests sending it to the scrapyard.

Whether it's sentimental or financial, you may want to keep your car. Explore what to do when insurance totals your vehicle, but you're reluctant to let it go.

It's a distressing situation, but it doesn't necessarily mean the end of the road for your vehicle. In fact, there are scenarios where you can keep a totaled car, salvaging some value from what might seem like a total loss.

Key Takeaways

• A car is totaled when damages surpass 65% to 70% of its market value.
• Market value is determined by factors like model, mileage, demand, and part resale value.
• You can retain a totaled car; the insurer pays its cash value minus deductible and salvage yard value.
• For leased cars, you get its value and must settle remaining lease payments

Understanding What a Totaled Car Means

First things first, let's clarify what it means when your car is labeled as "totaled." A car is typically considered totaled when the cost of repairs exceeds a certain percentage of the car's value, often around 70% to 80%. This percentage can vary depending on state laws and insurance policies.

Keeping a Totaled Car

So, can you keep a totaled car? The answer is yes, but it depends on a few factors:

1. Buyback Option: Some insurance companies offer a buyback option, allowing you to purchase the salvaged vehicle from them after they've paid out the claim. The buyback price is usually the salvage value of the car minus what the insurance company would have received by selling it to a salvage yard.

2. Salvage Title: If you decide to keep the totaled car, it will be issued a salvage title. This indicates that the car has been significantly damaged and repaired, making it ineligible for regular vehicle registration. However, with proper repairs and inspections, you may be able to obtain a rebuilt title, allowing you to legally drive the car again.

3. Repairing the Vehicle: Keeping a totaled car often involves repairing it yourself or through a mechanic. Depending on the extent of the damage, this can range from minor fixes to major overhauls. Keep in mind that safety should always be a priority when repairing a totaled car.

Factors to Consider

Before deciding to keep a totaled car, there are several factors to consider:

1. Cost of Repairs: Assess the cost of repairs versus the salvage value of the car. If the repairs exceed the car's value, it may not be financially feasible to keep it.

2. Safety and Reliability: Consider whether the car will be safe and reliable after repairs. Some damages, particularly structural ones, can compromise the safety of the vehicle.

3. Insurance Coverage: Check with your insurance company to understand how keeping a totaled car will affect your coverage. Some insurers may charge higher premiums or offer limited coverage for salvaged vehicles.

While keeping a totaled car is possible, it requires careful consideration of various factors including cost, safety, and insurance implications. Ultimately, the decision should be based on whether it makes financial sense and aligns with your long-term plans for the vehicle. If you decide to move forward, ensure that repairs are conducted properly and that the car meets all legal and safety requirements.

How to keep your totaled car