Can You Insure a Totaled Car?

Crashing your vehicle can be stressful, even more so when your insurer labels your car as a total loss. Once your vehicle receives a salvage title, you can’t insure it since it is deemed unsafe to drive. However, if your car is given a rebuilt title, it’s usually possible to insure it.

If you have a total loss vehicle and it undergoes significant repair, you can ask your insurance provider about rebuilt title insurance. Keep in mind that rebuilt title insurance tends to be limited to liability-only insurance.

• Can You Insure a Totaled Car?
• What Happens Whan a Car Is Totaled?
• Can You Keep a Totaled Car?
• What Is a Totaled Car?
• Frequently Asked Questions

Generally, you can’t insure a totaled vehicle as it is no longer roadworthy. A car is deemed totaled when repair costs are greater than or equal to the vehicle’s actual cash value. When a vehicle is considered a total loss can vary per state.

Totaled cars aren’t permitted on the road since driving them can be dangerous. Additionally, you can only insure a totaled vehicle after it has been repaired and received a rebuilt title.

Even if your totaled car still works but is deemed unsafe to drive, it’s a big risk to have on the road. It isn’t insured and can potentially malfunction if not repaired beforehand.

The state DMV and your insurance company will decide whether to issue a salvage certificate for your totaled car. This document prohibits anyone from driving or insuring your totaled vehicle.

After a collision or accident in which your car is severely damaged, your insurance provider will determine if your car is totaled or not. Your carrier will assess your vehicle’s actual cash value (ACV) and compare it to repair and scrap value. If the repair or scrap value equals or exceeds the ACV, it is marked as totaled.

Once your insurance company indicates that your vehicle is a total loss, you may be able to renegotiate this determination.

After you’ve totaled your vehicle, your insurer will compute the car’s ACV. If you agree with your insurance provider’s valuation, you must go through a total loss settlement process.

Although you can keep your totaled car, your insurance provider will reimburse the ACV minus deductibles. You will need to shoulder the cost of any repairs.

Just because you you can drive a car that’s been deemed a total loss doesn’t mean you should. When your car is designated unsafe, it’s best to keep it off the road. However, if you have the car undergo extensive repair, you might be allowed to drive it again.

A totaled car means it is damaged enough to be considered a total loss. A total loss can be calculated either through the total loss formula (TLF) or the total loss threshold (TLT). With the TLT method, an insurance company's claim adjuster decides the total repair cost, scrap value and actual cash value (ACV) of the vehicle before the accident.

It’s normal to have questions when you total your car. MoneyGeek answers questions about insuring a totaled car to help you navigate this situation.