Making sure the California Department of Motor Vehicles gets word of your “totaled” car can protect you from fines and, in some cases, fraud.

If you are in an accident and the insurance company totals your car, it may be the insurer or you who is responsible for notifying the DMV.

We’ll show you how to make sure every step is done correctly, so state officials can’t charge you for a car that’s now in a scrap heap.

When Is a Car Totaled in California?

After a car accident, insurance companies for at-fault drivers may agree to pay for the cost of your repairs. However, in the case of an automobile that’s not worth fixing, the insurer may declare the car a “total loss.” This would usually mean the insurer would provide you with the value of the car before the accident, so you could purchase another vehicle.

In California, insurers are allowed to total any car when the repair costs and salvage value are greater than the vehicle’s worth before the accident. The value of the car may be determined by similar makes and models in your area and what they are selling for.

The Types of Totaled Cars in California

According to the DMV, there are two types of totaled vehicles.

• A Total Loss/Non-Repairable Vehicle. This would be for a vehicle that was never to be driven again. The vehicle may be declared by the owner as solely a source for scrap metal or parts. The vehicle may be completely stripped. The vehicle may be a burned-out shell with no usable parts.
• Salvage Car. This designation can be used if the car can be repaired to a usable working order and you plan to make the repairs. You or the insurer may hang on to the SUV and later restore it to working order. You would apply for an updated registration if the car were repaired and ready for road use again.

If your car has been damaged in an accident, you’ll need to decide which designation is right for your vehicle.

Canceling the Registration on your Totaled Vehicle

Once you’ve decided the fate of your car (do you keep it, let the insurer have it, repair it, scrap it), the DMV needs to be notified. This is an important step because it allows you to stop paying car insurance premiums and any new registration renewal fees coming up.

It may be you or the insurance company who will have to alert the DMV to the car’s changed status. It will be

If the insurance company is keeping your car, you’ll be asked to complete a Notice of Transfer and Release of Liability form. This indicates the insurer is the new owner.

Deadline: If You are Keeping the Vehicle. If you retain your car after it was totaled, you’d have 10 days to submit a salvage certificate or a non-repairable vehicle certificate and turn in the plates. That’s 10 days after you settle with the car insurance company.

For either certificate, you would submit this form, filling out the part that applies to your situation and desires.

The California DMV notes that it may be the owner or the insurer who is required to alert the DMV in a total loss car situation. Both are able to file a salvage vehicle or non-repairable vehicle document, depending on the situation:

“If you receive a settlement from your insurance company, then the insurance company is responsible for getting the certificate within 10 days from the date of the settlement. 

If you have a total loss salvage vehicle, and you do not receive an insurance settlement, then you (as the vehicle owner) are responsible for getting the certificate.”

It’s a good idea to check with your insurance agent about who is responsible for canceling a registration, but always double-check that it’s been taken care of.

Other Tips for Drivers with Totaled Cars in California

Here are a few more things to keep in mind when you are filing to cancel the registration on your totaled car.

• During this process, don’t forget to alert the DMV to your accident by filing an SR-1 Form. This must be done within 10 days if your accident involves at least $1,000 worth of damage to one person or if any level of injury is involved. Find out how to fill out this form on our Guide to Filling Out an SR-1 Form.
• Don’t cancel the insurance on your car until you’ve canceled the registration. The DMV may not get word that your vehicle was totaled and start to fine you for driving an uninsured car.
• In some cases, you can be refunded for part of your last registration payment for a totaled car. Check the DMV’s requirements for refunds here.
• Make sure the registration on your car is changed. This information can be stolen and applied to another vehicle or used for identity theft.

Discussing Your Insurance Claim with a Skilled California Car Accident Attorney

Contact Maison Law for a free case consultation if you or a loved one was injured in an accident and another driver was to blame. There’s no obligation to you, and it’s a great way to determine if you could earn more for recovery if you had a lawyer handle your case.

If you do need our help to force more out of the car insurance provider, you don’t have to worry about having the money to hire Maison Law if you need us. We don’t get paid unless we win your case for you. Then our lawyer’s fee comes out of the settlement money that Nationwide must hand over to you.