What Happens When Your Car Is Totaled but Still Drivable?
Distasio Key Takeaways:
- A totaled but drivable car still has legal and insurance restrictions. You may need a salvage or rebuilt title in Florida; insurance coverage can be limited or canceled.
- Insurance payouts depend on your car’s ACV (Actual Cash Value). If you still owe on a loan, gap insurance may help cover the difference, but without it, you may be responsible for the remaining balance.
- Driving a totaled car can be illegal without the proper steps. To legally drive it again, you must repair it, pass an inspection, and obtain a rebuilt title; otherwise, you risk fines, impoundment, or possible legal consequences.
After the trauma of a car accident, you might find yourself in some shock to learn that your vehicle has been declared a total loss, even though it still runs. This can be confusing and frustrating, mainly when you depend on your car for daily use and may not be able to replace it immediately.
This can lead to several questions that may be challenging to answer. What happens when your car is totaled but still drivable? What are your legal rights? What are your insurance options?
Let’s get straight into it.
Can You Drive Around a Totaled Car?
One of the first and most pressing questions is: if your car was totaled but is still drivable, can you legally continue using it?
In Florida, whether you can drive a totaled car depends on several factors, including the extent of the damage and whether the vehicle meets safety standards.
Insurance companies declare a vehicle totaled when the cost to repair it exceeds a certain percentage of its actual cash value (ACV), typically around 80% in Florida. However, just because an insurer deems it a total loss does not necessarily mean the car is undrivable.
So, what happens when your car is totaled but still drivable? You might be able to keep using it, but only under specific conditions.
What Happens When a Car Is Totaled but Drivable?
When your car is declared a total loss, your insurance company usually owns it. Yet, in some cases, you can keep a totaled car by negotiating with your insurer. If you retain the vehicle, a salvage title will be issued, which carries certain conditions.
A totaled but still drivable car must be inspected before it can legally be used on public roads. It is illegal to drive a totaled car until it is repaired and passes a rebuilt title inspection. Florida law requires that any vehicle deemed a total loss be reported to the state and driving it without the proper title and repairs could result in fines and penalties.
How Much Will Insurance Pay for My Totaled Car?
When your car is totaled, insurance companies determine its value based on the ACV before the accident. The payout you receive depends on:
- The vehicle pre-accident market value
- The extent of the damage
- Your insurance policy’s coverage terms
If you keep a totaled car, the insurer will subtract its salvage value from your payout. That means you will receive less money than if you surrendered the vehicle to the insurer. Additionally, insuring a car with a salvage or rebuilt title can be far more expensive and challenging.
What Happens if My Car is a Total Loss and I Still Owe Money?
If your car was totaled and you unfortunately still owe money on it, the situation becomes more complicated. In this case:
- If your insurance payout covers the loan balance, you can pay off the remaining debt and move on.
- You are responsible for the remaining balance if the payout is less than you owe.
- Gap insurance (if you have it) may cover the difference between the insurance payout and the loan amount.
Without gap insurance, you could be left making payments on a car you no longer have or need to use your own funds to pay off the balance. If you keep a totaled car, you must still pay off your loan while covering repair costs.
Is It Legal to Drive a Car That Has Been Totaled?
Driving a totaled car in Florida is illegal unless it meets specific requirements. To legally operate a vehicle that has been declared a total loss you must:
- Repair the vehicle to meet road safety standards
- Pass a Florida Salvage Inspection
- Obtain a rebuilt title from the Department of Highway Safety and Motor Vehicles (DHSMV)
Until you complete these steps, driving a totaled car on public roads is illegal. If caught driving without a proper title or inspection, you could face fines and potential legal consequences.
Know Your Rights and Your Options
Dealing with a car that has been totaled but is still drivable is complicated. While you can keep and repair the vehicle, strict legal and insurance requirements apply. In the long run, it is likely not worth the extra cost or effort to keep a totaled car on the road.
If you are unsure, suffering the aftermath of an accident, and wondering if there’s help, Distasio Law Firm is here.
Whether you need guidance with negotiating with your insurers, understanding your legal rights, or dealing with an accident claim, Distasio is always here to help you. Count on us when you’re in a car accident to ensure you get the compensation and compassionate legal support you deserve.
As an ethical and trusted Tampa personal injury lawyer, Scott Distasio founded Distasio Law Firm in February of 2006, which focuses on all types of personal injury cases. He wanted to open a law firm that represented his belief that all firms should provide ethical and outstanding service to their clients.
