What Happens When Your Car Is Totaled But Still Drivable?

Posted September 3, 2024 | Personal Injury Blog

You may not want to part with a car for several reasons, even after a serious accident. For example, the vehicle may have sentimental value or perfectly suit your needs. If a car is totaled but still drivable, you may be able to keep it. However, to drive it again, you normally must get it repaired and apply for a new title.

Cars get totaled when the insurance company determines that the cost of fixing them is impractical. According to one report, 20 percent of modern vehicles are written off by insurance companies after a car crash claim, which is over 5 times more than were totaled in 1980. This increase is partly due to the prohibitively high cost of replacing the complex electronics intrinsic to many modern cars.

This post will explore everything you need to know to get a totaled but drivable car back on the road again.

Get the Facts From the Insurance Company

Get the insurance company’s report on the state of your car. A car is considered drivable if it is still operable despite having suffered substantial damage. 

A drivable car:

• Has functional tires

• Has working steering

• Starts and operates

It is also important to check whether your state allows you to keep a totaled car. In Texas and Utah, you are permitted to do so. However, you cannot drive the vehicle as-is. You must have it repaired and apply for a new title before driving it again.

Find out the total loss value

The total loss value is the amount the insurance company will pay you for the car. The company tries to determine the car’s value before the accident. Insurers use a complex assessment process that takes into account the car’s condition, modifications, and depreciation. 

Your insurance company will offer you the total loss value minus your deductible. If you feel that the car has been undervalued, you will have to present evidence that it is worth more than the insurance company’s valuation.

Deciding whether to keep a totaled car

If you decide to keep your totaled but drivable car, there are several factors to consider:

• Getting reduced payout: While you will receive a payout from your insurance company, it will be less than the total loss value minus your deductible. Your insurer will also deduct the salvage value of your car from their payout. This is the amount you could get for the car if you sold it to a salvage yard.

• Paying for outstanding loans: If you have a loan on your vehicle, the total payout may not equal the value of the loan. Therefore, you will have to pay this out of your own pocket, even if the car is a total loss. 

• Surpassing insurance company hurdles: Depending on the insurance company’s rules, there may be several hurdles to overcome before you can get your car back. Talk to your insurance provider about the process and decide whether it is worth the inconvenience.

• Getting a salvage title: In Utah and Texas, the insurance company cannot return a totaled car to you with the same title. The insurer must first obtain a salvage title. This means that the car cannot be driven legally in its current state and it will be impossible to obtain insurance for it.

• Facing the cost of repairs: The insurance company has stated that the cost of repairing the vehicle is impractical. Even though the car is drivable, you cannot legally drive it again until it has been repaired and issued with a new title. It is important to decide whether the time, expense, and inconvenience of repairing the vehicle is worth it.

• Paying more for insurance: Cars with a branded title, meaning that they have previously been declared total losses but have now been repaired, are usually more expensive to repair than other vehicles.

• Finding it difficult to sell: Buyers may be reluctant to buy a car that was previously totaled. If they are willing, they are unlikely to pay the market value. So, if you are planning to fix the car up and sell it, you may struggle to recoup your expenses.

Other Options for Drivable, Totaled Cars

Repairing a drivable totaled car is not your only option for disposing of it. Trading your car in or donating it both have benefits to evaluate.

Trade the car in

If you decide to keep a drivable totaled car, you may be able to trade it in when buying another car. To ensure you get a fair price, it may be a good idea to get your own independent appraisal before starting negotiations.

Donate your car

Another option is to donate your totaled car to charity. This is a generous act and may also result in a tax deduction.

In Texas and Utah, you will receive a tax receipt within 30 days of donating the vehicle. The sales price is equal to the amount you can deduct from your taxes. If the car sells for less than $500, you can deduct the fair market value up to $499. For deductions greater than $500, you will have to complete IRS Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes.

Sell it

Some companies specialize in buying, repairing, and reselling cars with salvage titles. You could obtain a quote from a few of these companies before making your final decision about whether to get your car back from the insurance company.

Totaled, but Drivable Car? Entrust Your Case to Fielding Law

Car accidents can leave us in pain physically, emotionally, and financially. Losing a car you rely on or that is part of your family’s history will only add to the toll. You need a courageous advocate on your side – an experienced car accident attorney who will fight tenaciously for the compensation you deserve to make you whole and get you back on the road again.

At Fielding Law, our auto accident attorneys have years of experience in fighting and winning car accident cases for our clients. We have secured settlements of over $1 million for clients injured in accidents on the road. 

At a free consultation, a car accident lawyer will listen carefully to your story, advise you on your legal rights, and even estimate your potential compensation. Take the first step on the road to justice by calling (877) 880-4090 or filling out our contact form, and we can arrange your free consultation very soon.