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Hearing that your car is "totaled" usually means the insurer has decided repairing it costs about as much as, or more than, the car is worth [1]. What happens next is mostly paperwork and one big number. Here's what to do, roughly in order.
The insurer will send a settlement offer, then a release and title paperwork. Once you sign and transfer the title, reopening is much harder. Take the time to check the number first.
Ask for the full valuation report behind the offer, including every comparable vehicle and every adjustment. Texas regulators note you can ask what source the insurer used to decide your car's value [1], and some states require the report on request. Washington, for example, requires a true and accurate copy if you ask [2].
Year, trim, drivetrain, mileage and options drive the number. Compare the report to your registration, window sticker and a recent odometer photo. See common valuation report errors.
Ask in writing how long rental coverage lasts (if you have it) and who pays storage at the tow yard or shop, and from what date. Storage fees can grow daily. Florida, for instance, requires notice and 72 hours to move the car before an insurer stops paying previously authorized storage [3]. Get personal items out of the car early.
The insurer usually pays the lender first. If you owe more than the car's value, gap coverage (if you bought it) may cover some of the difference, so call your lender and gap provider early. The actual cash value is still worth checking, because a higher value shrinks the gap.
TDI suggests getting dealer quotes, looking at local ads for similar vehicles, and documenting special features [1]. Same year, trim and similar miles, near you, are the strongest evidence.
List each error, the correct fact and the proof, and ask for a re-run. Use our negotiation letter template and the step-by-step dispute guide. If you still disagree, your policy may have an appraisal clause, and your state insurance department takes complaints.
Tell the insurer early. The salvage value is usually subtracted from the payment, and the car may get a salvage title that must be cleared before you drive it again [1].
TotaledRight's free error check reads your insurer's valuation report and flags common problems. The full report ($49) adds local comparables, a value range and a ready-to-send letter. Run the free error check.
TotaledRight is not a law firm, appraiser or public adjuster. This guide summarizes public sources as of the review date; laws and regulations change. Check your own policy and your state insurance department.