What is what happens when your car is totaled but still drivable?

When your car is deemed a total loss (totaled) by your insurance company, even if it's still drivable, it means the cost to repair the damage exceeds a certain threshold—typically 70-80% of the car's pre-accident market value. This threshold varies by insurance company and state. Here's what happens:

• Insurance Pays Out: Your insurance company will pay you the actual cash value (ACV) of your vehicle before the accident, minus your deductible. The ACV is typically determined by looking at comparable vehicles' prices in your area. This is less than what you might have paid for it initially, reflecting depreciation.

• You Surrender Ownership: The insurance company now owns the salvaged vehicle. They'll likely require you to sign over the title to them. This is because they've paid you for the car's worth, and they have the right to recoup some of their costs by selling the salvage.

• Salvage Value: The insurance company will then sell the totaled car to a salvage yard or auction. This is the salvage value, and it's usually significantly lower than the ACV. The difference between the ACV and the salvage value is what the insurance company covers.

• Gap Insurance (Optional): If you have gap insurance, it will cover the difference between what you owe on your loan and the ACV of your vehicle. This is crucial if you're still paying off a car loan because the ACV might be less than what you still owe.

• Driving the Car After Totaling: While the car might still be drivable, it's generally not recommended to drive it after it's been totaled. Driving it is against your insurance policy (you've relinquished ownership) and could cause further complications. The damage might be more extensive than initially assessed, making it unsafe to drive. Your insurance company might even try to reclaim the vehicle if you continue to drive it.

• Repairing it Yourself: It's technically possible to buy back your totaled car from the insurance company. This option usually involves paying the salvage value and letting you deal with repairs. However, getting the car repaired yourself might be more costly than the ACV, as some parts may be difficult to find.

In short, even if your totaled car is still running, the insurance company considers the cost of repair too high compared to the car's worth. They will compensate you for the car's value and take ownership, leaving you with the choice of seeking further compensation (with gap insurance) or walking away. It's best to consult your insurance company immediately to understand your rights and options.