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Car Accident: What Happens When a Car is “Totaled”?

After a car accident, your insurance company may tell you your car is “totaled.”

In other words, your car is so severely damaged that it has no value and will cost more to repair it than the vehicle is worth.

You may wonder how this decision is made and how you can tell if it’s the right decision. After all, once a car is declared totaled and you accept a settlement check, your claim is concluded. This is what the insurer wants. It may not always be in your best interests.

The accident attorneys of Gemma Law Associates want you to consider the following:

Your Car’s Value May Be Higher than What the Insurer Says

There are two ways you will deal with an insurance company after a car wreck in which the car is declared totaled:

  • If the accident is your fault – If you have collision coverage, the insurer should write you a check for your car’s actual cash value (ACV) minus your policy’s deductible.
  • If the accident is the other driver’s fault – His or her insurer should pay the ACV to the car’s owner (you, perhaps, or your bank or credit union) with no deductible.

Determining the ACV is essential. A higher value benefits you. However, your insurer is looking after its bottom line. A lower ACV works better for your insurance company.

The ACV generally should be based on your car’s “Kelley Blue Book” value and data about car sales in your area minus any damage that existed before the accident. If it costs more to repair the new damage to your car than your insurer can make by writing you a check for its ACV and selling the car for salvage, a claims adjuster will say your car has been totaled.

You should challenge the value a claims adjuster puts on your “totaled” car. You may deserve more.

You might make a counteroffer to the insurance adjuster. For instance, you could ask for 10 percent more than the insurer’s offer. With some knowledge of local car values or some research, you can make a case for a better payoff.

Two approaches are:

  • Establishing higher market value – You might ask for more if you can show that comparable vehicles have a higher fair market value. Who knows how good your insurance adjuster’s data is? Maybe the adjuster is looking at prices that aren’t local. If you can show several comparable cars in your area with higher prices, you can argue that your car’s ACV should reflect this information.
  • Establishing a higher value for your car – Your car may not be comparable to other cars on the market. For example, if your car had a custom paint job or it was upgraded with after-market parts, it should be worth more than typical cars. Even new parts installed during recent repairs would increase your car’s value.

Is It Ever Good To Have Your Car “Totaled”?

You might want to take the settlement for your “totaled” car and have it repaired anyway.

Remember: The insurer will deduct what it could have made by selling your car as salvage, and the insurer will withhold your policy’s deductible.

You should also keep in mind that you will have to file a salvage title with the Rhode Island DMV. This will require a small fee. The salvage title will stay with the car and lower its value despite your repairs.

Sometimes, it’s good to have your car totaled by insurance after an accident. It may be easier to replace the damaged vehicle regardless of its actual condition.

If the adjuster doesn’t want to declare your car totaled, again, you can challenge the adjuster. Suggesting that the car’s frame is likely to be damaged or that there could be other hidden damage that might be enough. The adjuster probably wants to close the case and move on. So, if it’s a close enough call, the adjuster might go along with you.

Our Lawyers Can Help If Your Car Is “Totaled By Insurance” After a Rhode Island Car Accident

You can often get a better settlement after a car accident if you know the process, have some extra information on your side, and make an effort to press your case with the insurance adjuster. That’s what Gemma Law Associates can offer you.

We can review your claim and the settlement offered for your totaled car. If it’s a fair deal, we will say so. If it’s inappropriate, we’ll explain why and how we will work to get a better settlement.

Contact us today for a free case review and learn more about how we can help you.


Serving the Greater Providence metro area, including Warwick, Cranston, Pawtucket, North Providence, South Kingston, Coventry, Cumberland, Woonsocket, and East Providence.

Gemma law is the best and helped and guided me threw everything … highly recommended thank you so much
ellen almgren
ellen almgren
2023-02-09
5 stars all the way. They did exactly what was expected. Good Job
Keith Ruggiero
Keith Ruggiero
2023-02-04
Very efficient and very good with communicating with me. I received updates about my case without having to call and request them. Very good law office! Very satisfied.
Bethania Herrera
Bethania Herrera
2023-01-19
Mark Gemma has been absolutely amazing. He was helpful and answered all concerns and questions I’ve had. Him and his team are beyond incredible, supportive, and sweet. I would like to thank them all for everything they’ve done.
Samantha Argus
Samantha Argus
2023-01-19
very professional and honest, what I liked the most is whenever you call the lawyer returns your call with every concern I had. It was my first time and I would not hesitate to trust them again.
Diana Palacio
Diana Palacio
2023-01-17
This team is extremely helpful and kind. Mark Gemma was a great help in guiding me through this whole process and was a huge help. I would recommend this team to anyone seeking legal counsel
Zachary Dustin
Zachary Dustin
2023-01-16
I am so happy with the turnout of my case. Both Sarah and Peter kept me up to date on everything and worked very hard on my case. The whole staff is friendly and diligent with their work. 100% recommend!
Chelsie Abatiello
Chelsie Abatiello
2022-12-28
Managed to get my money before Christmas...in just days after settling! Great communication and always helped with my needs, and always gave good advice. Would definitely recommend.
Trini Luckey
Trini Luckey
2022-12-23
Always professional and always checking in on their clients. Excellent atmosphere.
Susan Hallam
Susan Hallam
2022-12-17
After spending 8 hours in a hospital overnight to get stitches in my lip because of a drunk driver’s negligent decision to get behind the wheel, the last thing I wanted to do was think about it all. I sent an email to Gemma Law, and Mark Gemma quickly called me back with an empathetic approach to listening to my story and helping me figure out the next steps. When he told me I wouldn’t have to have any contact with the insurance companies, I was HOOKED! When he pointed out how unfortunate it was I might have to miss out on a lip modeling career from a potential scar from the stitches, I was SOLD! And when I finally received my settlement check after letting him do all the leg work while I just focused on recovering, I was and am eternally GRATEFUL! Mark Gemma helped me turn a near death experience into a new start in life and I highly recommend him to anybody needing a personal injury lawyer.
Angie Sherman
Angie Sherman
2022-12-07
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