Can You Keep Your Totaled Car in Florida After A Car Accident?
When your car suffers significant damage in Florida, insurance companies might declare it a total loss if repair costs exceed 70% or more of its value. For instance, if your car is worth $20,000, repairs costing more than $16,000 would qualify it as totaled.
However, if your car is totaled can you keep it? In fact, you can - but there are specific requirements you need to follow. Specifically, driving a car with a salvage title is illegal in Florida unless it's properly repaired, inspected, and re-titled as rebuilt.
This guide walks you through everything you need to know about keeping your totaled car in Florida, from understanding the state's total loss threshold to navigating insurance negotiations and the salvage title process.
Understanding Total Loss in Florida Law
Under Florida law, a vehicle meets the total loss threshold primarily through the 80% rule. This means your car qualifies as totaled once repair costs exceed 80% of its pre-crash actual cash value.
Florida Total Loss Threshold Explained
The state uses two distinct methods to determine total loss. For insured vehicles, your car becomes a total loss once your insurance company pays to replace it with a similar vehicle. Furthermore, for uninsured vehicles, the 80% threshold applies - meaning repair costs must reach 80% or more of the vehicle's replacement value.
How Insurance Companies Determine Total Loss
Insurance companies calculate your vehicle's actual cash value through several methods:
- Comparing prices of similar vehicles sold within 90 days in your area
- Using electronic databases or industry-recognized guidebooks
- Obtaining quotes from licensed local dealers
Additionally, insurers must include sales tax, title transfer fees, and registration costs in your settlement.
Your Legal Rights Under Florida Total Loss Statute
The law grants you specific rights during the total loss process. Moreover, insurance companies must provide detailed documentation supporting their valuation methods. You're entitled to:
- A written explanation of any deductions for depreciation
- A copy of the repair estimate for partial losses
- 72 hours' notice before storage charge payments end
Consequently, if you disagree with the insurer's valuation, you maintain the right to negotiate. The insurance company must explain their calculation method in writing upon request. Furthermore, they cannot terminate storage payments without giving you adequate notice to remove your vehicle.
Steps to Keep Your Totaled Car
After receiving a total loss determination, you maintain the right to keep your vehicle rather than surrendering it to the insurance company.
Negotiating with your insurance company
Insurance companies typically allow vehicle retention upon request. Accordingly, you'll need to negotiate the settlement amount. To strengthen your position, gather these essential items:
- Independent vehicle valuation from trusted sources
- Written estimates from professional body shops
- Local listings of comparable vehicles
- Photos and receipts of recent upgrades
- Service history documentation
Understanding the salvage value deduction
Essentially, the insurance company calculates your payout by subtracting two amounts from your vehicle's actual cash value: your deductible and the salvage value. For example, with a car valued at $10,000, a $500 deductible, and $1,500 salvage value, you'd receive $8,000.
Several factors primarily influence your car's salvage value:
- Make and model demand
- Vehicle age and mileage
- Extent of damage
- Current market conditions
Required documentation and paperwork
Within 72 hours of deciding to keep your totaled vehicle, you must submit specific documentation to the Florida Department of Highway Safety and Motor Vehicles. Indeed, the required paperwork includes:
The certificate of title must be properly assigned in the "Transfer of Title by Seller" section. Meanwhile, you'll need to complete form HSMV 82363, marking it as "Salvage by Owner Retained". Rather than leaving any liens unaddressed, you must provide satisfaction documentation for all existing liens.
Navigating the Salvage Title Process
The process of obtaining a salvage title begins with submitting specific documentation to Florida's Department of Highway Safety and Motor Vehicles.
How to obtain a salvage title in Florida
The state requires submission of several key documents within 72 hours of declaring your vehicle salvage. These include:
- Original Florida title or manufacturer's certificate of origin
- Completed Application for Salvage Title (Form HSMV 82363)
- Required fees based on title type and lien status
- Proof of ownership documentation
Converting to a rebuilt title
Upon completion of repairs, you'll need to transform your salvage title into a rebuilt title. Primarily, this involves gathering comprehensive documentation of all repairs. Subsequently, you must submit photos of the vehicle in its damaged condition from multiple angles, along with receipts for all major component parts.
The state particularly focuses on tracking repairs to critical components such as fenders, hoods, bumpers, doors, engines, transmissions, and airbags. Generally, all receipts must be under the owner's name or repair shop's name.
Inspection requirements and costs
The inspection process takes place at either a DMV Regional Office or a Private Rebuilt Vehicle Inspection Program (PRVIP) facility. The initial inspection fee costs $40.00, with additional inspections charged at $20.00 if needed.
The inspection focuses on verifying that no stolen parts were used and checking basic safety features. Upon passing inspection, you'll receive a sealed envelope containing your documentation. Ultimately, this envelope must remain sealed when submitted to your local tax collector's office for final processing.
The entire review process typically spans several weeks, with a processing time of approximately 10 business days once all documentation is submitted. The total cost for applying for a rebuilt title amounts to roughly $77.25.
Financial Implications and Insurance Options
Most insurance companies offer liability coverage for vehicles with rebuilt titles, although obtaining full coverage presents more challenges.
Insurance coverage for salvage vehicles
Insurance options primarily depend on your vehicle's status. Liability coverage remains available through major providers like State Farm and Geico. Notably, comprehensive and collision coverage options become limited once your car receives a salvage title. Insurance premiums often increase up to 20% for rebuilt title vehicles.
Cost analysis: Repair vs. replacement
The financial impact of keeping a totaled car extends beyond initial repairs. Kelley Blue Book indicates rebuilt salvage vehicles typically sell for 20-40% less than those with clean titles. Consider these key factors affecting your decision:
- Insurance settlement calculations
- Vehicle depreciation rates
- Repair cost estimates
- Future resale limitations
- Storage fees until repairs complete
Gap insurance considerations
Gap insurance becomes crucial altogether if you're financing your vehicle. This coverage pays the difference between your car's actual cash value and the remaining loan balance. For instance, if you owe $27,000 on a car now worth $24,000, gap insurance covers the $3,000 difference plus your deductible.
You should consider gap coverage if you:
- Made a down payment less than 20%
- Have a loan term beyond 60 months
- Rolled over negative equity from previous loans
Overall, gap insurance costs approximately $5 per month through insurance companies, whereas dealership options often cost several hundred dollars. Soon after purchasing gap coverage, you'll receive a mandatory 30-day "free-look" period in Florida, until which you can obtain full refunds if needed.
Conclusion
Certainly, keeping your totaled car in Florida requires careful consideration of multiple factors. Understanding the 80% total loss threshold rule helps you make informed decisions about your vehicle's future. Therefore, weighing repair costs against your car's actual cash value becomes crucial before deciding to keep it.
The path from salvage to rebuilt title demands attention to detail and proper documentation. Your vehicle must pass strict inspections, while all repairs need thorough documentation. Additionally, expect insurance limitations and higher premiums once your car receives a rebuilt title.
Above all, protecting your legal rights throughout this process matters most.
Making smart choices about your totaled vehicle starts with understanding these requirements and implications. Armed with this knowledge, you can confidently navigate the process of keeping your totaled car while staying compliant with Florida law.
The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute an attorney-client relationship.
