Just because a car insurance adjuster classifies your car as a total loss doesn’t necessarily mean that you'll never be able to drive it again. If a thorough independent inspection reveals the damage is mostly cosmetic, or you’re willing to take the chance that the car is repairable, you may want to consider keeping and fixing the car. However, your state and your insurance company may not make it easy to get the car back on the road.
Speak with the insurance adjuster or check motor vehicle laws in your state. Although most state laws allow you to keep a totaled vehicle, licensing and insuring the car may be difficult. For example, laws in every state require that the new title carry a salvage brand. In addition, some states won’t issue license plates until the vehicle passes a safety inspection.
With regard to insurance, some companies simply won’t insure a salvage vehicle at all, and others won’t insure a vehicle they’ve inspected and classified as a total loss.
Know the total loss threshold for your state. That information, along with knowing about the type of damage the car sustained, can be useful in deciding whether to keep the car or accept a settlement offer. Some states set a total loss threshold at a certain percentage of the vehicle’s market value. Other states use a standard total loss formula that considers a vehicle a total loss when the cost of repairs plus the salvage value exceeds the vehicle’s actual cash value.
If you decide to keep the vehicle, your insurer will first determine its current market value as if it were undamaged, then subtract the deductible and the amount your car could have been sold for as-is at auction or to a salvage yard. You’ll receive the car, a statement of proof of loss and a settlement check for any difference that remains.
Apply for a new title with a salvage brand according to the procedures outlined by motor vehicle laws in your state.
Hire a qualified mechanic to make the necessary repairs
Schedule a salvage vehicle inspection if your state requires one before issuing or renewing license plates
