Getting into a car accident can be stressful. But things get even more confusing when your car is declared “totaled” even though you can still drive it. You might be wondering what to do next, how insurance works, and whether you can keep driving the vehicle. Here’s what you should know if you’re in this situation.
What Does It Mean When a Car Is Totaled?
A car is considered “totaled” or a “total loss” when the cost to fix it is more than what the car is worth. For example, if your car is worth $6,000 but repairs would cost $7,000, your insurance company may decide the car is totaled. This decision isn’t just about safety — it’s about money.
Even if the car still runs and can be driven, it can still be called a total loss by your insurance company.
Can You Drive a Totaled Car?
In some cases, yes. If the car still has working tires, steering, brakes, and lights, you might be able to drive it. But just because it moves doesn’t mean it’s safe or legal to keep driving it long-term.
After being totaled, the car may need a new title. In most states, this is called a salvage title. That means the car has been damaged badly in the past. Once that title is issued, some places won’t let you drive the car until it passes certain inspections.
How Do Insurance Companies Decide the Car Is a Total Loss?
Insurance companies look at the actual cash value (ACV) of your car before the crash. They compare that to the estimated cost of repairs. If fixing the car costs more than a certain percentage of the car’s ACV — often around 70% to 80% — they may declare it a total loss.
They also consider:
- The car’s age and mileage
- Previous damage or repairs
- Added features or modifications
- Local laws on total loss thresholds
For example, if your car is worth $10,000 and repair costs are estimated at $8,000, the insurer may call it a total loss, depending on your state’s rules.
What Happens If You Keep the Car?
You can choose to keep the car, but there are a few things to know:
- The insurance company will subtract the car’s salvage value from your payout. That means you’ll get less money.
- You may need a salvage or rebuilt title to legally drive it again.
- Some insurers won’t cover the car again unless it’s inspected and repaired properly.
- The resale value of the car will drop, and it may be harder to sell later.
Keeping the car might make sense if the damage is mostly cosmetic and the vehicle still works safely. But it’s important to get a mechanic to check it out.
Problems You Might Face with Insurance
People often run into issues when dealing with insurance companies after a car is totaled:
- Low settlement offers: The insurance payout may be less than you think your car is worth.
- Deductibles: You may still have to pay your deductible, even if the car is totaled.
- Disagreements: You and the insurance adjuster may not agree on whether the car should be totaled or repaired.
- Delays: Getting a decision and payment from the insurer can take time.
If you think the offer is unfair, you can research the fair market value of your car using sites like Kelley Blue Book or Edmunds. You can also show repair records, photos, and receipts to support your claim.
When Should You Call a Car Accident Lawyer?
If you’ve been hurt in the accident or if the insurance company isn’t working with you fairly, you might want to speak with a lawyer. A lawyer can help with:
- Talking to the insurance company
- Getting a better settlement
- Understanding your rights
- Filing a claim for injuries or damages
In some cases, you may be able to get compensation for things beyond car repairs, like medical bills, lost wages, and pain and suffering.
Get Help Today
Dealing with a car that’s totaled but still drivable can be confusing. You might be able to drive the car, but it depends on your state’s laws, the damage, and what your insurance company says. Be sure to look closely at your options before accepting a settlement or deciding to keep the car.
If you’re feeling overwhelmed or think you’re not getting a fair deal, help is available. You don’t have to go through it alone.
If you were in a crash and your car was totaled—even if it’s still drivable—call Friedman Injury Law at (702) 970-4222. Our team can help you understand your rights and fight for the compensation you deserve.
