Experiencing a car accident is always stressful. Not only do you have to deal with the physical and emotional impacts of the accident itself, but you may also face confusion about what happens next. One of the most common questions drivers ask is, “What happens when my car is totaled but still drivable?” If you’ve found yourself in this situation, you’re not alone. Let’s break down what it means when your car is declared a total loss but is still able to run and what options you have moving forward.
What Does It Mean When Your Car Is Totaled?
When an insurance company declares your car “totaled,” it means that the cost to repair the vehicle exceeds a certain percentage of its value. The percentage threshold can vary by state or insurance company, but it’s typically around 70-80%. For example, if your car is worth $10,000, and repairs would cost $8,000, the insurance company might decide it’s better to write off the car as a total loss rather than pay for expensive repairs.
It’s important to note that “totaled” doesn’t necessarily mean the car is beyond repair or undrivable. A vehicle can be considered totaled even if it still runs and is safe to drive, but the cost of fixing it outweighs its value.
Can You Drive a Totaled Car?
Yes, a car can be drivable even if it’s been deemed totaled. The ability to drive the car depends on the extent of the damage. If the damage is cosmetic, like a few dents or scratches, the car may still be roadworthy. However, if the damage involves structural issues that affect the safety of the vehicle, it may not be safe or legal to drive.
Before deciding to drive a totaled car, it’s important to assess its condition. You should have a mechanic inspect the vehicle to ensure it is still safe for the road. In some cases, a totaled car might be fine to drive for a short time, but you should be cautious and make sure it meets safety standards.
What Happens Next?
After your car is totaled but drivable, you have several options. The course of action depends on your insurance policy, your car’s condition, and your financial goals.
Option 1: Accept the Settlement and Surrender the Car
When your car is declared a total loss, the insurance company typically offers you a payout based on its actual cash value (ACV), which is the market value of your car before the accident. If you accept this offer, you will surrender the car to the insurance company. They will then sell it to a salvage yard or auction it off.
This option works best if you are ready to move on and replace the vehicle. However, many drivers find that the ACV offer doesn’t fully cover the amount they owe on the car loan or the true replacement value of their vehicle.
Option 2: Keep the Car and Accept a Reduced Payout
If you prefer to keep your totaled car, you may be able to negotiate a deal with your insurance company. In this case, you would receive a reduced payout, and the insurance company would give you ownership of the vehicle. Keep in mind that the car would likely receive a salvage title, which could make it harder to insure or sell later on.
If you decide to keep the car, you are responsible for any repairs. This option may work well if the car is still drivable and the cost of repairs is within your budget. You should also check with your insurance company to see what kind of coverage you can get on a salvage-title vehicle.
Option 3: Repair the Car Independently
Another option is to decline the settlement and repair the car on your own. This can be a good choice if you believe the insurance company undervalued your car or if the repairs are minor and within your budget. However, it’s important to consider the safety implications of repairing a totaled vehicle. Always make sure that any repairs meet state inspection standards, as driving a car that hasn’t been properly repaired could put you at risk.
If you decide to go this route, keep in mind that a totaled car will have a diminished value. Even if the repairs are done properly, the resale value of the car will be significantly lower.
Common Problems with Insurance Companies
Insurance claims involving totaled vehicles can be complicated. Insurance companies are in the business of minimizing their payouts, so they may offer lower-than-expected settlement amounts. Here are some common problems drivers face:
- Low settlement offers: Insurers may undervalue your car, offering you less money than it’s worth.
- Salvage title issues: If you choose to keep your totaled car, you may end up with a salvage title, which can make it hard to insure or sell the vehicle.
- Deductibles: Your deductible may be subtracted from the settlement amount, which could reduce the payout.
- Disagreements on repair costs: Sometimes insurance companies will push for a total loss designation even when the car is repairable.
When to Consult a Car Accident Attorney
If you’re struggling with your insurance company after your car is declared totaled, or if you’re facing difficulties with the settlement offer, it may be time to consult a car accident attorney. A skilled attorney can help you understand your rights and negotiate a fair settlement. They can also guide you through the claims process, ensuring that you receive the compensation you deserve.
Attorneys are especially helpful if you’ve sustained injuries in the accident, as they can help you pursue compensation for medical expenses, lost wages, and other damages related to the accident.
Seek Legal Help Today
Dealing with a totaled car that’s still drivable can be confusing. While it’s not always ideal, understanding your options can help you make the best decision for your situation. Whether you choose to accept the payout, keep the car with a salvage title, or repair it independently, it’s important to know what’s involved and what each choice means.
If you’re facing a totaled vehicle claim and need help navigating the process, or if you’ve been injured in an accident, don’t hesitate to contact an experienced attorney. They can help you secure the compensation you deserve and ensure that your rights are protected throughout the claims process.
Call Friedman Injury Law at (702) 970-4222 today to speak with an attorney who can guide you through your car accident claim and help you make the best decision for your future.
