Car Totaled, But Not at Fault: What Happens Next? (2025)

What Is a Total Loss?

After an accident, your insurance company might report “car total loss, not at fault.” This means you didn’t cause the damage your car suffered. It also means that the insurer believes the cost to repair your vehicle exceeds its actual cash value (ACV).

As such, insurers consider a vehicle a total loss or “totaled” to save money. If the insurer totals your vehicle, its payout is limited to the ACV, and it therefore doesn’t need to pay the higher amount to repair it.

You shouldn’t interpret your insurance provider’s decision to mean any of the following:

• The vehicle isn’t driveable
• The vehicle isn’t safe
• The damage is too severe to be repaired
• You must get rid of the vehicle

It’s possible that you can keep your vehicle, repair it, and continue driving it even after the insurance company reports it as a car totaled, no fault.

How Insurance Determines My Car's Value After a Total Loss

Valuing a car can be somewhat subjective. Typically, the insurance company will carefully consider the state of your vehicle immediately before it was totaled. Then, it compares your car to similar vehicles for sale near you. The actual cash value (ACV) the insurer pays you should be approximately the price you’d get if you sold the car yourself right before the accident.

My Car Is Totaled — Now What?

If you’re wondering what happens when your car is totaled but still drivable, you should know that — at least for a time — your life is likely to get more complicated. When your car suffers such serious damage that the insurer considers it a total loss, you’ll take a financial hit. Your vehicle might be one of the most valuable assets you own, and replacing it will cost a lot of money. Even if you drive an older car, you may need it to commute to work or school.

These situations are the reason you have insurance. However, the mandatory coverage in your auto policy won’t compensate you for your vehicle. You must have optional comprehensive and collision coverage.

Since you weren't at fault, you might be able to file a liability claim against the responsible driver’s insurance. However, this can take a long time, particularly if you also suffered an injury.

Here are some alternative options when you have a car totaled, not at fault:

File a Claim With Your Insurer

If you have collision and comprehensive coverage in your auto insurance policy, you can file a claim with your insurer. How does car insurance work when you are not at fault? These optional coverages are no-fault, meaning your insurer will compensate you regardless of who’s to blame.

Collision coverage can pay to repair or replace your car after an accident in which you hit an object or another vehicle. Ask yourself whether any of the following scenarios apply to you:

• Someone hit me and totaled my car
• I hit someone, damaging my car
• I hit a fixed object, totaling my car
• My car was totaled by another driver on my policy, such as a child or spouse
• I loaned my vehicle to someone and they totaled it

After your accident, you’ll report the damage to your insurer. If you have the right coverage, your insurer will pay the ACV minus your deductible. For example, if the insurance company calculates your ACV as $25,000 and you have a $1,000 deductible, you’ll receive a check for $24,000.

ACV isn’t the replacement value. Rather, the insurer calculates the ACV as the current purchase price minus depreciation due to age and condition.

The ACV for a newer vehicle may be significantly less than the amount owed for it. Gap insurance was created to address this situation. It pays off your loan if your car is totaled but you receive an insufficient payout.

However, many people are unaware of gap insurance, and not every lender requires it. Thus, you might end up with no vehicle and an outstanding balance on your car loan in the following situations:

• No gap insurance, not at fault
• Brand-new car totaled, not at fault
• Car totaled, still owe, not my fault
• Financed car totaled, not at fault
• Leased car totaled, not at fault

Gap insurance is no-fault — the only proof you need is that your car was totaled and your loan or lease balance is greater than the insurance payout.

What to Do if You Disagree With the Insurance Company

If the amount your insurance company wants to pay you is unfairly low, you have options. If you can find clear evidence that your car’s fair market value is more than the insurer thinks, you might receive a better payment.

An independent vehicle appraiser or car dealer may be able to consider your car’s condition before the accident and give you a statement of the car’s actual cash value. If you increased the value of your car by upgrading components before the crash, make sure to show the receipts to your insurance adjuster.

File a Claim With the Other Driver’s Insurer

Liability insurance pays other property owners when you damage or destroy their property. Every state except New Hampshire requires vehicle owners to buy property damage liability coverage as part of their auto insurance policies.

States typically enforce their insurance requirement by refusing or canceling vehicle registrations belonging to owners without insurance. Virginia allows drivers to pay a fee instead of penalizing them for driving without insurance.

Anyone who has property damaged or destroyed in a crash can file a property damage claim with the at-fault driver’s insurer. For such a claim to succeed, you must prove that the other driver was negligent in causing the collision. Once you establish liability, the insurer will pay for your losses up to the policy limits. Additionally, after the accident, you might experience a loss in the vehicle's resale value. In such cases, you may be able to file a diminished value claim to recover the difference in value before the accident and after the repairs are made.

The other driver’s policy limits might be too low to cover your losses if they only bought the minimum amount of coverage required. Your insurer might cover the difference if you have uninsured/underinsured coverage.

Keep or Scrap the Car

If your insurer wants to total your car but you wish to keep it, you may be able to negotiate a settlement. This often involves accepting a reduced payout in exchange for retaining the vehicle, which could still allow you to repair and keep your car. If you don’t have collision and comprehensive coverage and there’s no at-fault driver to pursue for compensation, you still have a damaged vehicle to deal with. You have a few options here, including:

• Keep the car and pay to repair it
• Drive the vehicle without repairing it
• Sell the car for scrap to a salvage yard

Your choice will depend on the vehicle’s condition and the cost of repairs.

Learn More About Your Options From ConsumerShield

The loss of your vehicle can cause significant financial hardship. ConsumerShield helps people facing such a loss by connecting them with qualified legal representation. Contact us for a free case evaluation to find out how we can assist you.

How a Lawyer Can Help With Your Total Loss Claim

Don’t make the mistake of thinking insurance companies are on your side. Insurers primarily want to look out for their own interests, and compared to the average consumer, they have far more resources to do so. Insurance companies hire attorneys, appraisers, and other experts to help protect their bottom line and avoid giving you the payout you deserve.

It might not be feasible for you to hire an entire team of professionals to work with you, but it’s wise to consult a car accident lawyer. The right attorney can discuss your case with you and help you protect your rights against insurance companies.