Learning About The Benefits Of Working With Auto Dealers

4 Options For A Totaled Car

14 March 2023

Nino Clement

When a car is totaled, the insurance company won't necessarily replace your car. Instead, they will pay out the current cash value of the car before the accident. You can sell the car to the insurance for this amount, or you can take a lower payout and keep the car. If you choose the latter, there are a few options to maximize your car's value.   

1. Arrange for Repairs

When an insurance company declares that a car is totaled, it's not necessarily impossible to fix. Totaled simply means it will cost more to fix the car than the car's current value. You can still repair the vehicle as long as you pay the difference between the insurance payout and the final repair cost. This is a good option if you don't want to purchase a new car at this time and if you plan to do at least some of the work yourself, as this lowers the cost of repairs.

2. Donate to Charity

For those that aren't too concerned about eking the most value as possible from the car, charity is a good option. Charities that accept non-working vehicles are usually partnered with a cash-for-cars type of salvage business. The salvager picks up the car and takes it. Once they assess the value and pay it to the charity, you are provided with a tax receipt so you can claim the write-off value of the donation on your annual income taxes.

3. Part It Out

Parting out a vehicle on your own often results in the largest payout, but it is also the most labor- and time-intensive. It's really only an option for those with some mechanic ability along with the space and time at home to deal with it. There are two main ways to part out your vehicle—seeking out individual buyers on your own or selling the most valuable parts to whichever salvage yard will pay the most.

4. Sell to a Salvager

You may have seen advertisements offering cash for cars. These are typically salvage operations that will offer a flat rate for your totaled vehicle. The process usually begins with an estimate, taking into account the condition of the car and what is available to salvage. Many salvagers will even pick up and tow the car in, either for free or by deducting the cost of the tow from the final valuation. If you need cash for your car, this is the simplest way to get it.

There is no one-size-fits-all option when a car is totaled, but getting cash for your car can help mitigate some of the loss. Contact a local service that offers cash for cars to learn more. 

Share