Below is a "general" rule for recovered or damaged Vehicles. It depends on the State how they redo a Title. 25 years ago in Texas, my Daughter "totaled" her Honda Accord. I then did what is listed below and purchased the Car back and then had the Body Damage fixed. At no time 25 years ago did Texas issue a new Title declaring Salvaged or Rebuilt. So, it depends on your State Laws. Doug
After the insurance company declares your car a total loss, theyโll come to you with an offer for a cash settlement. This will be the ACV of your car, plus the salvage value.
If you accept the cash settlement offer, you are basically agreeing to sell your car to the insurance company, who will then salvage it for parts for whatever value it still has.
But, you have another option โ you can keep the vehicle. In this case, the insurer will pay you the ACV of your car, and you get to keep it.
Regardless of which option you choose, you still have one problem remaining. Itโs required for the insurance company to report that your car is now a total loss to your stateโs motor vehicle department.
If you keep the car, your car will have a new โsalvage title.โ This means that your car is currently only good for parts, and cannot be legally driven on the road. But donโt worry โ there is a way to get it back to road-worthy status.
Can I clear a salvage title so I can drive my car again?
If you choose to keep your car and accept the cash payout for the carโs ACV, you can use that money to fund the repairs on your car. Remember, though, you canโt drive the car while it has a salvage title, so youโll need to tow it to and from the repair shop.
Once itโs back in tip-top shape again, you can apply to have your salvage title cleared. Youโll need to tow the car to your stateโs motor vehicle agency and pay a fee to have it inspected.
If it passes, your car will have a new title, and you can now legally drive your car again. However, a new title doesnโt erase the carโs history as a salvage vehicle. If you decide to sell this car in the future, new owners will know its backstory.
Is it a good idea to drive a vehicle thatโs been declared a total loss?
Weโve outlined the process you can use to clear a totaled vehicle so that you can drive it again. However, itโs important to know that owning a totaled-and-cleared vehicle still comes with consequences.
First, if your car gets into a car crash and declared a total loss, itโs possible that there will still be damage remaining even if you get it fixed. There may be unseen structural damage with the frame, loose wires, or damaged airbags. This can still make it risky to drive, even after the repairs.
Second, when you get your car inspected to clear the title, itโs generally only an inspection for stolen parts. The inspection doesnโt do much to determine whether your ride is actually safe to drive or not. So even if the car passes the inspection, itโs a good idea to get it looked at by an experienced mechanic.
Finally, because your car now has a branded title, itโll be a lot harder to sell in the future should you decide to do so. Potential buyers will be able to see its history as a vehicle that was previously a total loss, which can make it less likely theyโll want to buy it.
Still, if you are careful in fixing up your car, take the proper legal steps to get it road-worthy again, and donโt care much about reselling your car in the future, fixing up your totaled car can be a great way to keep something thatโs sentimental to you.
