A totaled car is any car that the insurance company doesn’t feel is worth repairing anymore or sees its repair cost far greater than its value, the insurance company can be so nice as to offer you a cash equivalent fitting to your car’s value or an equivalent replacement.
A totaled vehicle sometimes isn’t as worse as it is described, some are still within repairs. But if I do totaled my car, do I need to notify the DMV if my car is totaled?
You need to notify the DMV if your car is totaled within 1o to 30 days to have a title transfer or a salvage certificate. Notifying the DMV will enable you to get a settlement after the title transfer from the insurance company.
Do I Need to Notify the DMV if my Car is Totaled?
Yes, you need to inform the DMV once your insurance declares your car a total loss within 30 days of the declaration.
Informing the DMV about your totaled car is important. Depending on what state you stay in, there’s always an annual renewal notice you can choose to wait for or give a direct report. Either way, you still get to pay a fine but a reduced price for a totaled car.
However, the person whose name is in the registration of the vehicle should be aware that he needs to surrender the certificate of title to DMV and ensure to inform anyone that wants to purchase the car that the car is totaled.
How Do I Report a Totaled Car to the DMV?
Once you make up your mind to notify the DMV about your totaled car, the notification should contain the following:
- The vehicle year and model
- The vehicle make
- The vehicle identification number (VIN number)
- The vehicle registration plate number and state of registration, if known;
- The name, address, and phone number of the insurer who is submitting the notice; and
- The insurer’s claim number and the date the vehicle was declared a total loss by the insurer.
For more information on how to notify a totaled car to the DMV, please contact any DMV or official DMV website in your state.
Also, even after the junked car is totaled and is reported to the DMV, you are also mandated to inform anyone that shows interest in buying the car about the totality of the car. It’s very important you do so.
Why Do I Need to Notify the DMV if my car is Totaled?
Informing the DMV if your car is totaled is important for you and whoever is likely to get their hands on your vehicle in the nearest days to come.
A totaled vehicle should bear a new title in most cases, in the title is also expected to include salvaged so future buyers can be aware the vehicle is totaled and severely damaged.
What Happens If I Don’t Notify The DMV If My Car Is Totaled?
There are common but notable repercussions for ignoring the DMV and not informing them about your car being totaled. A few of the things you are likely to get are:
1. You Possibly Won’t Get a Settlement
The DMV is in charge of title transfers. Without a title transfer from you to the insurance company, you won’t get a settlement for your totaled car.
A settlement comes after ownership has been moved to the insurance company or whoever wants to repossess it. After that is when payment can occur. Ignoring the DMV is at your peril.
2. You Don’t Get a Salvage Certificate
The DMV is to give a salvage certificate to car owners. A salvage certificate is a type of title given to vehicles that are considered totally damaged by an insurance company that wants to pay a claim or has paid a claim on it.
Depending on what state you stay in, you will need to know what criteria qualify you for a DMV salvage certificate. Ignoring the DMV doesn’t sound so well to me.
3. You Possibly have Issues with the Insurance Company
If a problem arises and there is a need to get proof of ownership or possibly get new vehicle registration, you probably won’t get it without the DMV that controls your state affairs. Ignoring the DMV isn’t a good bet for you.
What Happens to a Totaled Car?
Before declaring your car totaled, ensure you own to the exact definition of a “Totaled car”. According to insurance companies, a totaled car can also be any car whose repair cost is closer to or more than the current market price of the car.
If you are convenient to have your car stay that way, it is advisable to play along with the terms and conditions given to you.
A totaled car is a waste of resources. Your totaled car will have to be a possession of the insurance company, transferring ownership to their name and selling the car parts in scrap to a salvage buyer.
A car that will cost more to repair isn’t of great value to you. It is more favorable to have the insurance company transfer the ownership to themselves and pay you off with the equivalent cash value of your totaled car.
If you choose to keep your totaled car, consider the expensive figures attached to it. Keeping your car will require deducting the salvage value from the total settlement, which is likely unfavorable.
It would be good to get a car replacement of the settlement value or walk home with some cash.
But what if you think your car is worth more than the settlement? Sometimes it can be the insurance company hoping to feast on your fear and ignorance of the basic laws attached to having a totaled car. If your car I worth more, reopen the negotiation and back it up with the following detail;
- A notable document of any special feature of the car
- Check the current car’s value online or check local dealers to compare prices.
If after this you are on the winning side, you can request a raise and if you aren’t, you can settle in for the settlement.
What Are The Duties Of The DMV?
The Department of Motor Vehicles (DMV) in the US- is a common name tag everyone is aware of. In case you still ponder on what functions they represent, here is a list:
- Issuing of Driver’s license, a learner’s permit for moving vehicles e.g. cars, trucks, motorcycles, etc.
- Administering written and vision test to drivers who want to get on the highway.
- They verify Social security Number (SSN)
- Issues a non-driver’s photo ID.
- They schedule road tests.
- Proof of ownership and transfer of ownership.
- Vehicles, registrations, and renewal
- Inspection stickers, etc.
Final Thought
It is important to notify the DMV concerning your totaled car so you can have the settlement if settlement is what you want for yourself.