{"id":353090,"date":"2017-02-14T14:03:55","date_gmt":"2017-02-14T19:03:55","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/injury\/car-accidents\/my-car-was-totaled-and-im-not-at-fault-now-what.html"},"modified":"2025-11-24T14:37:00","modified_gmt":"2025-11-24T19:37:00","slug":"my-car-was-totaled-and-im-not-at-fault-now-what","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/injury\/car-accidents\/my-car-was-totaled-and-im-not-at-fault-now-what.html","title":{"rendered":"My Car Was Totaled and I’m Not at Fault: Now What?"},"content":{"rendered":"\n
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My Car Was Totaled and I'm Not at Fault: Now What?<\/h1>\n\n
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\n By Ty McDuffey, J.D.<\/a> | Legally reviewed by Katrina Wilson, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n
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If someone totals your car, you must file insurance claims with both the at\u2011fault driver\u2019s insurer and your own. The insurer will determine whether repairs exceed the car\u2019s value and, if so, declare it a total loss, paying you the vehicle\u2019s actual cash value. You may face issues like low payout offers or loan balances exceeding the settlement, making legal help critical.<\/p>\n<\/div>\n<\/div>\n

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You drive reasonably. You come to a full stop at intersections, always use your turn signals, and obey speed limits scrupulously. Despite your caution, you may still be in an accident because of another motorist’s actions. What happens if someone else’s negligence results in a car accident that totals your motor vehicle? This article explains the process and potential issues following such an auto accident.<\/p>\n

An accident can leave you feeling overwhelmed and uncertain about what comes next. A car accident attorney<\/a> near you can guide you through the claims process and help secure fair compensation for your totaled vehicle.<\/p>\n

Determining a Total Loss<\/h2>\n

After exchanging phone numbers and other contact information, the first step following an accident is to file an auto\u00a0insurance claim<\/a>\u00a0with the at-fault driver’s insurance company. You should also file a claim under your own insurance policy and ascertain whether you have\u00a0collision\u00a0coverage<\/a>\u00a0subject to any\u00a0deductible<\/a>. The documentation included in your insurance claim \u2014 which should ideally include your out-of-pocket expenses, an appraiser’s report, and any medical bills \u2014 should be carefully assembled to ensure that you are fully compensated.<\/p>\n

For example, there are situations in which the Kelley Blue Book value of your vehicle alone may not account for the full value of the vehicle and property damage. Vehicle modifications<\/a>, like an improved stereo system or recently replaced tires, might impact the actual cash value of your car. By providing comprehensive information to support your claim for reimbursement against the liability insurance company, you can increase your chances of maximizing your payout from liability coverage.<\/p>\n

Alongside a police report (if available), the\u00a0insurance adjuster<\/a>\u00a0will use this information to determine the vehicle’s value before your accident. Your own insurance company will assist you during the claim process,\u00a0communicating with the at-fault party or their adjuster to determine the dollar value of the insurance claim. This number is then compared to the cost of repair.<\/p>\n

A total loss is declared by the car insurance company when the cost of repair amounts to a percentage of the total value that is set by the insurer. This percentage is constrained and varies by state laws, which frequently require a declaration of complete loss when damages are about 70%\u00a0or more of the total value of the vehicle. The insurer may set a higher percentage than the state (but not a lower one) in reaching this determination.<\/p>\n

After a Total Loss Is Determined<\/h2>\n

When a car has been totaled, the insurer must compensate you for the determined value of the vehicle prior to the accident<\/a>. They won’t replace your car or guarantee that the vehicle’s pre-accident value will be enough to purchase a replacement. You cannot, in most situations, keep the wreck to sell or use for parts.<\/p>\n

By accepting a\u00a0settlement payment<\/a>, you agree that the insurer will take possession of the totaled car. They will then sell it to a scrap yard or repair it and put it back on the market as a\u00a0salvage-titled<\/a>\u00a0vehicle. However,\u00a0it may be possible to\u00a0negotiate with the adjuster\u00a0in order to\u00a0keep your\u00a0totaled vehicle.<\/p>\n

Ultimately, your claim results depend on whether you and\/or the at-fault driver have comprehensive coverage or insurance that covers the nature of the damages relevant to your particular situation.<\/p>\n

Potential Issues<\/h2>\n

Several potential issues can arise when a car is totaled\u00a0and you are not at fault. For example,\u00a0an insurer’s value estimate of the wrecked vehicle\u00a0may seem\u00a0too low. Following an offer by an insurance adjuster, you may send a reply that includes arguments and evidence for a higher estimate of the vehicle’s value. This may result in an adjustment, but if the insurer is unwilling to value the vehicle properly\u00a0you may need to sue them in\u00a0civil court<\/a>.<\/p>\n

A problem may\u00a0arise\u00a0if\u00a0the totaled car had been\u00a0purchased with a car loan, and the amount outstanding on the debt is greater than the insurer’s estimated value. In this circumstance, unless you have gap insurance coverage, you may find yourself paying for the car that was totaled through no fault of your own. Unfortunately, the car’s destruction doesn’t alter\u00a0the loan agreement<\/a>. As such, your only\u00a0recourse may be to argue for a higher value on the vehicle.<\/p>\n

How Do I Get a Rental Car After a Total Loss?<\/h2>\n

One key concern following a total loss accident is the question of transportation. You’ll need a vehicle to get to work, run errands, and continue with your daily life. Many auto insurance policies include rental car coverage, which\u00a0pays for a rental car<\/a> while your claim is being processed and you seek a new vehicle. Check your policy or talk to your insurance agent to understand the specifics of your coverage.<\/p>\n

What Is a Salvage Title? What Is Salvage Value?<\/h2>\n

When an insurance company declares a car a total loss, the vehicle’s title is typically replaced with a salvage title<\/a>. This title indicates that the car has been damaged severely\u2014typically in a flood or accident \u2014 and that repairs to the vehicle would be greater than or near the car’s value before the damage occurred.<\/p>\n

The salvage value is the estimated worth of the totaled vehicle as\u00a0is. Insurance companies often sell these vehicles at auctions to recoup some of their costs. If you decide to keep your car after it has been totaled, your insurance payout will be reduced by the salvage value.<\/p>\n

Assessing Fair Market Value and Your Car’s Actual Cash Value (ACV)<\/h2>\n

The fair market value of your car is the price that a willing buyer would pay to a willing seller, assuming both have reasonable knowledge of the facts. It’s typically the basis for an insurer’s payout on a totaled vehicle.<\/p>\n

The Actual Cash Value<\/a> (ACV) is the fair market value of the car minus depreciation. Insurance companies use the ACV to determine payout amounts for total loss or property damage liability claims. The ACV may also be used if your car is stolen.<\/p>\n

Buying a New Car After a Total Loss<\/h2>\n

After your insurance company has paid out the ACV of your totaled car, you might be in the market for a new vehicle. If you had an auto loan on your totaled vehicle, the insurance payment would first go to your lender. If your car’s ACV exceeds what you owed on the loan, you can use the surplus towards a down payment on a new car.<\/p>\n

Review your financing options when purchasing a new car<\/a>. These might include:<\/p>\n