From Yahoo Finance: 2025-06-12 17:23:00

When your car is totaled, insurance pays a lump sum instead of repair costs. States have damage thresholds for totaling. Airbag deployment doesn’t always mean total loss. More cars are being totaled due to rising repair costs. Insurance types can cover totaled cars. Negotiate for higher settlements. Consult industry databases for car values.

Insurance check goes to owner, leasing company, or lender. You still owe money if car is totaled. Gap insurance covers the difference between loan balance and insurance payout. New car replacement insurance pays for a new vehicle. You can keep a totaled car, but salvage value is deducted. Some totaled cars can be repaired.

It can take weeks to months to receive an insurance check for a totaled car. Consider hiring a lawyer for complex claims. Rates may go up for at-fault collision claims. Salvage vehicles have restrictions. Rates generally don’t increase for comprehensive claims. Consult your insurance company for more information.

Read more: What happens when your car is totaled?