What Happens When Your Car Is Totaled But Still Drivable?
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If your car is declared a total loss but still runs, it can be confusing to know what to do next. You might wonder why the insurance company called it a “totaled car” when it is still drivable, whether you can legally keep driving it, or if you can keep the car after your insurance claim.
Understanding what happens when your car is totaled but still drivable can help you make informed decisions about repairs, insurance coverage, and whether it is worth keeping the vehicle. This article explains how insurance companies make total loss decisions and outlines your options for keeping, repairing, or replacing your car after a serious car accident.
What Does It Mean When Your Car Is Totaled But Still Drivable?
How Insurance Companies Define a Total Loss
When an insurance company declares your car a total loss, it means that the cost to repair the damage is equal to or greater than the value of the car. In other words, repairing the vehicle would not make financial sense for the insurer.
Why a Car Can Be Totaled Even If It Still Runs
However, a totaled car does not necessarily mean the car is beyond repair. In many cases, the vehicle still runs and can even be driven safely for a short time. This often happens with older cars or vehicles that have high repair costs compared to their market value.
When your car is totaled but still drivable, the “totaled” label is about money, not necessarily safety or drivability.
How Do Insurance Companies Determine Whether a Car Is a Total Loss?
Understanding the Total Loss Threshold
Insurance companies use specific formulas to determine whether to declare a vehicle a total loss. The decision usually depends on the total loss threshold, which is a percentage set by state law or the insurer.
Repair Costs Versus the Value of the Car
If the estimated repair cost plus the car’s salvage value exceeds this threshold, the insurer will declare the vehicle a total loss. For example, if your car is worth $10,000 and repairs cost $8,000, your insurance company will likely declare it a total loss.
The insurance company also considers the value of the car before the accident, local market conditions, and the extent of the damage. Even if your car still runs, it may be deemed a total loss because the cost to repair it outweighs what the car is worth.
Why Would an Insurance Company Declare It a Total Loss When It Is Still Safe to Drive?
Hidden and Structural Damage
You might look at your drivable car and wonder why it is considered totaled. The answer often lies in hidden or structural damage that is expensive to repair.
Older Cars and Repair Costs
Even if your car still looks fine, the extent of the damage might include bent frame components, damaged airbags, or weakened safety structures. Repairing those issues can be prohibitively costly, leading the insurer to declare a vehicle a total loss even when it still runs.
Sometimes, the insurer totals an older car simply because the car is worth less than the cost to restore it to pre-accident condition. That does not necessarily mean the car is beyond repair. It just means the insurance company would rather pay you for the car’s value than for the repairs.
Can You Drive a Totaled Car That Is Still Drivable?
Legal and Insurance Restrictions
Driving a totaled vehicle is possible under certain circumstances, but it depends on state law and your insurance policy.
Safety Concerns Before Driving
In many states, you can drive a totaled car temporarily before the title is processed. Once the insurance company declares your car a total loss, it often becomes illegal to operate it without an inspection or title conversion.
Even if your car is still drivable, that does not mean it is still safe. Some damage may not be visible, and driving a totaled car with structural issues could put you and others at risk. Always have a mechanic inspect the vehicle to confirm it is still safe to operate.
What Happens During a Totaled Vehicle Claim?
Steps in the Total Loss Process
When the insurance company declares your car a total loss, it will begin a process to determine your payout and take ownership of the vehicle.
- Inspection and Valuation: The adjuster will estimate the repair costs and assess the value of your car before the crash.
- Settlement Offer: You will receive a total loss settlement based on the car’s actual cash value.
- Title Transfer: If you accept, the insurance company will take the car and issue an insurance payout.
Keeping the Vehicle After a Total Loss
If you choose to keep your totaled car, the payout will be reduced by the salvage value, and you will be responsible for repairs and registration under a salvage title.
Can You Keep a Totaled Car After an Insurance Payout?
How to Keep Your Totaled Vehicle
Yes, in most cases you can keep a totaled car after your claim is settled, although the process varies by insurer and state.
What to Know About Salvage Titles
If you decide to keep a totaled vehicle, your insurance company will reduce your settlement by the salvage value and let you retain the car. You will then need to apply for a salvage title or rebuilt title before legally driving it again.
However, be cautious. Once your car has a salvage title, it loses resale value, can be harder to insure, and may not be street-legal until it passes a safety inspection. Before making this decision, it is wise to consult a local personal injury attorney to understand the financial and legal consequences.
What Is a Salvage Title, and How Does It Affect a Totaled But Still Drivable Car?
What a Salvage Title Means
A salvage title indicates that a vehicle was previously declared a total loss by an insurer. Even if the car is still drivable, a salvage title tells buyers and insurers that the vehicle sustained significant damage.
Rebuilt Titles and Future Insurance Options
After repairs, you can apply for a rebuilt title, but the car will always be listed as previously totaled, which affects its resale value and insurance options.
A car with a salvage title can sometimes be insured under limited insurance coverage, but most insurers offer only liability insurance policies, not full coverage. Confirm what your insurance policy allows before driving the vehicle again.
What If You Still Owe Money on a Totaled Car?
How Loan Balances Affect Settlements
If you still have a car loan when your vehicle is totaled, your lender still expects payment even if the car cannot be driven.
How GAP Insurance Can Help
Your insurance company will pay the actual cash value of your car to the lender first. If that payout is less than what you owe, you are still responsible for the balance. This is where GAP insurance can help. GAP coverage pays the difference between your loan balance and the settlement amount.
Without GAP coverage, you could end up paying for a totaled car you no longer have.
Should You Repair Your Totaled But Drivable Car?
When Repairing Might Make Sense
Repairing a totaled but drivable car can make sense if the damage is mostly cosmetic and you do not mind having a branded title.
Risks of Repairing a Totaled Vehicle
However, there are risks. Repairs on totaled vehicles can be extensive, and if the car is beyond repair or has hidden frame damage, it might not be worth the cost. Even if your car is still drivable, it may not perform safely in the event of another accident.
If you decide to repair your car, use a trusted shop and request a detailed inspection. Remember, totaled vehicles can be complicated, and what seems like a simple fix could turn into an expensive project.
How a Car Accident Lawyer Can Help You With a Totaled Vehicle Claim
When to Contact an Attorney
A qualified Dallas car accident lawyer can help ensure your total loss settlement is fair and that the insurance company does not undervalue your claim.
Protecting Your Rights During the Process
An experienced Dallas personal injury attorney can review your insurance policy, negotiate with insurance companies, and help you get your car back or secure the payout you deserve.
If you are dealing with a totaled vehicle claim in Texas, consult a car accident attorney before signing any paperwork. The right car accident lawyer can protect your financial recovery and help you avoid mistakes when deciding whether to keep your totaled car or surrender ownership of the car.
Dealing With a Totaled Car That Is Still Drivable
A totaled car that is still drivable presents a challenging situation. You might be able to drive a totaled car temporarily, keep your totaled car, or accept the total loss settlement and move on to a new car, but each option comes with consequences.
Before you decide, make sure you understand what your insurance company will pay, what is required to make the car legally drivable again, and whether the car is still safe.
If you are dealing with an accident that left your car totaled but still drivable, talk to an experienced car accident attorney at Allbee Law Firm. We will help you understand your rights, handle car accident cases involving totaled vehicles, and ensure you are treated fairly throughout the insurance claim process.
For a free consultation, call Allbee Law Firm at (972) 848-4848 today.
FAQs About Totaled Cars That Are Still Drivable
Can I legally drive a totaled car in Texas?
In most cases, no. Once the insurance company declares your car a total loss, you are required to transfer the title to a salvage title. A car with a salvage title cannot be legally driven on public roads in Texas.
If you decide to keep and repair the car, it must first be rebuilt and then inspected by the Texas Department of Motor Vehicles or another approved inspection facility. Only after it passes inspection and receives a rebuilt title can you legally drive it again.
Until that process is complete, driving a totaled car that has not been rebuilt and retitled can violate state law and could also void your insurance coverage.
Will my insurance policy still cover me after the car is declared totaled?
Once your vehicle is totaled, your full coverage policy usually ends with the payout. You will need to discuss insurance coverage options with your insurer if you plan to keep or repair the vehicle.
Can I get my car back from the insurance company?
Yes. If you want to keep your totaled vehicle, you can request to buy it back during the settlement process. The insurer will deduct the salvage value from your insurance payout.
How do I know if my car is still safe to drive?
Have a trusted mechanic inspect it. Even if the car is drivable, the extent of the damage could affect safety systems or frame integrity. Driving a car with hidden damage is not worth the risk.
What happens if I total my car, but it is an older car?
An older car is more likely to be declared totaled because its market value is typically lower, even if the car remains drivable. In that case, it may be practical to keep the car and use it as-is if it passes inspection.