Can You Sell a Totaled Car After an Accident?

After a car accident, the insurance company may determine that the vehicle is totaled and issue a check for the salvage value. But can you sell a car that has been declared totaled? The answer is yes, under certain conditions.

Understanding Totaled Car Situations

When a vehicle is declared a total loss, it means that the cost to repair the car is greater than the car's market value. Insurance companies often use a percentage of the car's estimated value to determine if a car is totaled. For instance, if the repair estimate is over 80% of the car’s value, it might be declared totaled. This varies by insurer and can range from 70% to 85%.

Buying Back the Totaled Car

In some cases, you can buy the vehicle back from the insurance company. If you decide to do this, you can take ownership of the car, but you may still need to follow specific procedures. Here's what to consider:

Check if the car is financed. If it is, it technically doesn't belong to you. You must contact the lender to get your vehicle back. Check the title. If the title is in your name and there's no lien, the car is yours to sell or keep. Contact the insurance company to buy the car back. They will provide you with a check and take possession of the vehicle. Rebuild the car and get a salvage title. Once the car meets inspection requirements, you can sell it as a salvage vehicle or keep it.

Personal Experience

A few years ago, I bought back a totaled car from an insurance company. I agreed to buy it for the total loss amount, less the agreed-upon purchase price. I continued to use the car and could have sold it, but I chose to keep it. If the car had been financed, I would have had to contact the lender and possibly negotiate with them.

Incidentally, one of my cars, a 20-year-old Toyota in excellent condition with very low mileage, was declared totaled due to an accident where the other party was responsible. The car needed some minor repairs, primarily new front lights and a few body parts. I opted to buy it back, repair it, and give it to a family member. The car didn't even require a wheel alignment. My insurance company offered to drop collision coverage, but I declined.

Driving and Selling a Salvage Vehicle

Once you buy back a totaled car, you need to rebuild it, often with the help of a mechanic or a salvage yard. After the car meets inspection requirements, you can get a salvage title, which allows you to drive it legally. However, the value of the car will be significantly lower due to the salvage designation. It can still be sold as a salvage vehicle or used for personal use.

Remember, each state has different rules regarding the sale and registration of salvage vehicles. Make sure to research and comply with these regulations to avoid legal issues.

Conclusion

Whether you choose to sell or keep a totaled car that you have bought back depends on your circumstances and needs. Regardless of what you decide, it's crucial to understand the legal and practical implications of your actions. Proper research and consultation with professionals can help you navigate this process successfully.