As a car enthusiast, nothing breaks my heart more than totaling a car. Yet, no matter how sad you understandably are, there’s no time to sulk, because the law demands that its due process is done. With that in mind, if you do total your car, do you need to notify the DMV if your car is totaled? Unfortunately, there’s no one-size-fits-all answer for that, as the process for notifying the DMV in case your car gets totaled differs from one state to another.
In some states, you (the car owner) will have to notify the DMV of a total loss within a set time period, but in other states, the insurance company will take care of it for you. Elsewhere, there are some extra things you’ll have to do, while the insurer does all the heavy lifting. In short, the regulations for notifying the DMV in the event of a totaled car will vary slightly between states, so it’s worth ringing up your local DMV office to figure out what the next steps are.
1) What Deems A Car “Totaled” Or “Total Loss”?
Now, before we go into the specifics of which state does or doesn’t require that you notify the DMV of a totaled car, what deems a car “totaled”, anyway? In general, your car is deemed to be totaled if all the total costs of repairing it exceed a specific percentage or threshold of the car’s actual cash value (ACV). Normally, this percentage ranges from around 70% to 80%, but it’ll vary slightly depending on the state and the insurance policy.
For example, if your car is worth $10,000, and the repair costs are estimated to be $8,000, the insurance company might just deem it as a “total loss”. It’s justified by the fact that it’s not an economically sound or feasible idea to repair the vehicle given the costs. As for your car’s ACV, the insurance company will determine its actual cash value based on factors such as your car’s age, mileage, make, model, as well as its overall condition.
2) Which State Requires That You Notify The DMV?
When a car gets totaled, it’s no longer legally allowed to drive on the road, unless you put the car through extensive repair jobs, and have it pass a state inspection. The latter will then test your car to make sure that it’s road-worthy again. As I mentioned earlier, different states will have different rules regarding who notifies the DMV when a car gets totaled. For example, in California, the car owner must report the total loss of a car to the CA DMV within 10 days.
Meanwhile, in New York, your car’s insurer will notify the DMV on your behalf. Just to give you a bit more context on how this varies from state to state, here are a few more examples:
Florida
You, not the insurance company, must report a totaled car to the Florida Department of Highway Safety and Motor Vehicles (FLHSMV) within 72 hours. Once that’s done, you’ll then have to submit the car’s title. You then have the option to sell the car or retain it as a salvage vehicle.
Texas
Once again, you’ll have to notify the Texas Department of Motor Vehicles (TxDMV) if you intend on keeping your car after it’s been totaled. But, you have to notify them within 30 days and get a salvage title. Otherwise, if the insurance company is keeping the car, they’re the ones who have to notify the DMV.
Illinois
When a car gets totaled, the insurance company will be responsible for notifying the DMV. However, if you want to keep your car after the insurance payout, you’ll have to apply with the Illinois Secretary of State (ILSOS) for a salvage title, within 20 days of your car being declared a total loss.
Georgia
Within 30 days of your car being deemed a total loss, you’ll have to let the Georgia Department of Revenue (DOR) know and apply for a salvage title. However, that only applies to car owners who intend on keeping the car. If you rather have the insurance company take ownership of the vehicle, then they’ll have to let the DMV know, instead.
Pennsylvania
Similarly, in Pennsylvania, the car owner would have to notify the Pennsylvania Department of Transportation (PennDOT) if they intend to keep the car after it’s deemed a total loss. This process involves applying for a salvage title within just 48 hours after receiving the payout. Or else, if the insurance company wants to take ownership, they’ll take care of it.
Ohio
Once again, if you total your car and want to retain ownership, you’ll have to notify the Ohio Bureau of Motor Vehicles (BMV). And, you’ll need to do this within 30 days and apply for a salvage title. For the most part, though, if the insurance company wants to take ownership of the car, they’ll be the ones to let the DMV know.
Michigan
If you want to keep your totaled car in Michigan, you’ll have to apply for a salvage title with the Michigan Secretary of State within 15 days. Or else, if the insurer wants to have ownership over the vehicle, they’ll have to let the DMV know, although you (the car owner) are still responsible for making sure that the car’s title is properly updated.
North Carolina
Same story here with North Carolina… If you want to keep ownership over a totaled car, you’ll need to apply for a salvage title with the DMV within 10 days. Otherwise, if you’re letting the insurance company take over ownership of the totaled car, they’re the ones who’ll have to notify the DMV.
Arizona
Once more, the insurance company will take care of notifying the DMV if they want to take ownership of a totaled car. Otherwise, if you (the car owner) want to keep owning the car after it’s been declared a total loss, you’ll have to personally notify the Arizona Department of Transportation’s Motor Vehicle Division (MVD), and apply for a salvage title within 30 days.
3) What Do You Need To Notify The DMV?
In summary, in most states where a car is totaled – 1) if you want to keep the car, you’ll be the one who has to personally notify the DMV and apply for a salvage title, or 2) if the insurer has to take ownership over the totaled car, they’re the ones who’ll have to notify the DMV. If you aren’t 100% sure how these laws apply in your state, all you need to do is call and ask them if you or the insurance company need to identify the DMV, and what are the steps to do it.
Now, if you’re the one who has to notify the DMV, there’s some paperwork involved. Here are some of the steps involved in notifying the DMV of a totaled car:
- First off, you’ll have to gather all the necessary documentation. This usually includes the title, and the statement from the insurance company (which declares the car a total loss). In some states, you’ll also have to fill out a specific “Total Loss” form and submit it to the DMV.
- Once you have all the paperwork and forms ready, you can submit them to the DMV. In some states, you have the option to submit these documents in person at the DMV office, online, or even by mail. Make sure you check your state’s DMV website to figure out the exact process.
- After submitting the paperwork, I’d also advise keeping in touch with the DMV and following up with them to ensure that your car’s status is updated accordingly. You can call the DMV, or in states where a lot of online services are available, you can even check this over the web.
4) What Happens If You Don’t Notify The DMV?
It’s worth being prudent too, because if you don’t notify the DMV (in time) if your car has been totaled, there are consequences. Here are just some of what’ll happen if you don’t let the DMV know of a totaled car in time:
- First up, you’ll likely face fines or are unnecessarily charged for registration renewal and other fees. That’s because even though your car has been totaled, and it’s no longer operational, as you didn’t notify the DMV, the car is still marked in their records as an active vehicle.
- Speaking of, those fees will keep stacking so long as you don’t let the DMV know. If you don’t notify the DMV that your car has been totaled, they’ll keep sending their registration renewal notices and charge you for fees. Plus, failing to pay these fees can lead to additional penalties or even a suspension of your driver’s license.
- Moreover, if your totaled car remains ‘active’ in the DMV’s records, you may encounter issues when you’re trying to sell off that car, or if you’re trying to register a new one. In some cases, the DMV might even refuse to issue you a new title until your old, totaled car has been taken care of.
- Not properly notifying the DMV could also lead to financial problems, too. Mainly, your credit scores will be negatively impacted if it’s shown that fees aren’t being paid and they’re sent to collections. On top of that, your insurance rates might even go up if the DMV’s records show any unresolved issues with your old car.