What happens if your car is totaled?
Learn what goes into the decision and what your options are.
If your car has been damaged and the potential repair costs exceed the value of the car, it is considered a total loss. Here are answers to common questions that spring up when your vehicle has been declared totaled.
How do you determine if your car is totaled?
After a loss (for example, a collision, vehicle fire or flood damage), there are a few reasons an insurance company may declare your vehicle a total loss. Often, the repairs are estimated to cost more than what the vehicle is worth — vehicle worth being the actual cash value determined by its year, make, model and major options, as well as mileage and overall condition. (Though the damage may not look bad, the repair can cost much more than you'd think.)
Other reasons for totaling a vehicle include when the damage makes the car irreparably unsafe or if your state's regulations require it for your vehicle's damage severity.
How much will you get for a totaled car?
You'll receive the determined actual cash value of the vehicle, minus the deductible you chose when insuring it, as well as any applicable state taxes and/or fees.
What happens when your car is totaled and you still owe money?
You'll be responsible for satisfying your loan agreement whether or not the money you receive covers it all. This is why you might consider GAP (Guaranteed Asset Protection) insurance, so called because it covers the gap between what you owe on the vehicle and its current market value.
Can you keep your car if it's totaled?
Talk to your auto insurance company or, if you have State Farm auto insurance, speak with your agent or claim representative to see whether state regulations allow you to keep your vehicle.
What do you need to do if you decide to surrender your totaled car?
First, clear out the car and remove personal items and paperwork. If possible, clear your information from the navigation and mobile phone systems, and take off the license plates. Round up all copies of the key and the title. Then, contact your State Farm agent for further instructions and to schedule vehicle pickup.