Insurance Wants To Total My Car But I Want To Keep It (2025)

What Is a Total Loss?

Are you wondering, “What should I do if insurance wants to total my car but I want to keep it?” You’re not alone, especially if your car was totaled in an accident that wasn’t your fault. It may help to first understand how insurance companies define a total loss.

Insurance companies may declare a damaged vehicle a total loss if repairing it will cost more than it is worth—its actual cash value (ACV)—or if it is unsafe to drive. Your insurer typically assigns an adjuster after you report accident damage to your car. The adjuster assesses the damage to your vehicle based on the laws of your state.

Some states set a total loss threshold (TLT). If repair costs exceed a certain percentage—which is 60% in some states up to 100% in others—of the car’s market value before the accident, the insurer must declare the car a total loss.

Other states use the total loss formula (TLF), which subtracts the salvage value from the market value, or ACV, and if repairs cost more, the insurer can declare the vehicle totaled.

When Can an Insurance Company Declare Your Car a Total Loss?

An insurance company declares a car a total loss when repair costs surpass the vehicle's actual cash value (ACV) before the accident. In most states, insurers use a "total loss threshold," which is a percentage of the car's ACV. For example, if repairs exceed 75% of the car's ACV, it is declared totaled. Some states follow a "total loss formula," combining the repair costs with salvage value to determine if it meets or exceeds the ACV.

Factors influencing the decision include your car's age, mileage, and condition before the accident. Insurers also consider the availability of replacement parts and the cost of towing and storage. Knowing your state’s total loss laws can help you understand the process and advocate for a fair valuation.

How to Keep Your Totaled Car

Insurance companies generally don’t want to pay more than the ACV on an accident claim. So they often total your vehicle, leaving it with a salvage value. That’s the money they could get selling the damaged vehicle to a salvage or scrap yard.

You can simply contact your insurer and ask to keep your car. Your insurer can then subtract the salvage value from the settlement payout, providing you a check for the remainder and turning the car over to you.

How Much Will Insurance Pay for a Totaled Car?

Insurance companies pay the ACV of the car, which is its market value before the accident, minus your deductible. The ACV is calculated based on factors like your car's age, mileage, condition, and any upgrades or customizations.

If the car is leased or financed, the insurer pays the lienholder first. If the settlement is less than what you owe, you are responsible for the balance unless you have gap insurance, which covers the difference. It's a good idea to research your car’s market value online or obtain appraisals to ensure the insurer’s valuation is accurate.

Understand the Laws of Your State

When you receive the total loss declaration, consider the laws of your state before deciding to keep your car.

Some states allow you to retitle a totaled vehicle after you’ve made repairs in a process known as getting a “rebuilt title.” However, other states may only allow you to sell the car for salvage or parts, and other states may not allow you to do anything with your salvage vehicle at all.

You can talk to your insurance agent or your state’s Department of Motor Vehicles (DMV) or Department of Insurance to find out what is allowed in your state before pursuing your totaled vehicle. Understanding the laws of your state on salvage vehicles can keep you from spending time and money only to find out you can’t legally keep your car.

Can You Dispute an Insurance Total Loss Decision?

Yes, you can dispute an insurance company's total loss determination. Start by reviewing the insurer's valuation report, which outlines how they determined your car’s ACV. Compare it with independent resources like Kelley Blue Book or NADA Guides to confirm the accuracy.

If the insurer undervalues your car, provide evidence of its true market value. This can include maintenance records, recent upgrades, and comparable car listings. If negotiations fail, you can hire an independent appraiser or file a complaint with your state’s insurance regulator. Legal action is also an option, though it should be a last resort due to the costs involved.

Consider Why You Might Want to Keep Your Totaled Car

Is keeping your totaled car worth it? That depends on your personal circumstances. A few reasons you might want to hold on to your totaled car include:

• You want to use it for parts or sell its parts.
• You want to donate it to charity as a tax write-off.
• You plan to repair it or have someone fix it.
• You love your car and don’t want a different one.

Any of those reasons might make pursuing a salvage title or rebuilt title to hold onto your car worthwhile for you.

Getting Your Car Back on the Road

The road from the total loss claim process to repairing and retitling your car can be long. But in states that allow it, you can get a rebuilt title to drive your car again by taking the right steps.

Depending on your state, the value of your car and its model, you may be able to repair your car, apply for a rebuilt title, pay a fee and pass an inspection from the DMV. Here’s the documentation you’ll need to accomplish that:

• Before and after photos of the damage and repair
• Receipts for parts and repair work
• Proof of ownership
• Your salvage title
• A completed rebuilt title application

Once you clear those hurdles, you’ll want to find the car insurance you need to drive it and an insurer willing to cover your car.

Many insurance companies refuse to insure vehicles with rebuilt titles. Those that do often only provide liability insurance. Liability insurance is the minimum in most states to receive your tags to legally drive on public roads.

Steps to Take if Your Car is Declared a Total Loss

1. Understand your policy: Confirm your coverage and deductible amounts.
2. Research your car’s value: Use online tools to estimate its market value.
3. Gather documentation: Compile maintenance records, receipts, and photos.
4. Negotiate with the insurer: Provide evidence to challenge a low settlement.
5. Resolve the loan/lease balance: Work with your lienholder if applicable.

Act quickly to avoid storage fees, which the insurer may stop covering after a set period. If you agree with the settlement, sign the required paperwork and arrange for the car's title transfer.

The Pros and Cons of Keeping a Totaled Car

Holding onto a car that’s been declared a total loss can be a challenge. To decide whether it’s a journey you want to take, consider these advantages and disadvantages of keeping your totaled car:

Pros

• Can use the settlement money to make repairs
• May earn money from selling car parts
• No need to carry collision or comprehensive insurance

Cons

• Inability to title a salvage vehicle under your state’s laws
• High repair costs
• Challenges in finding auto insurance
• The diminished value of your car making it hard to sell

Weighing these pros and cons against the value you find in keeping your totaled car can help you decide whether the time, effort and money are worth it.

Common Reasons Insurance Totals a Car Quickly

• Extensive damage: Severe structural or mechanical damage increases repair costs.
• High repair costs: Repairs exceed the insurer's threshold for declaring a total loss.
• Low market value: Older cars with high mileage are easier to total due to low ACV.
• Towing and storage fees: Additional costs can push the car over the total loss threshold.

Insurance companies aim to minimize costs and avoid lengthy repair processes. Understanding these factors can help you prepare for a fair settlement if your car is declared a total loss.

Discuss Your Options With ConsumerShield Today

The decision to keep a salvage vehicle can involve many complicated factors. At ConsumerShield, we are committed to sharing our insurance experience with consumers so that you can get back on the road as soon as possible. Connect with us today to find out more about keeping your totaled car.