Your car was totaled: keep it or sell it for scrap

What should I do when my car is declared a total loss?

Ask the insurer whether you can keep the car and what the payout would be if you do, then compare that to the settlement for giving it up. If you keep it, you can sell it for scrap or parts yourself. Do not sell it until the insurer confirms the claim is settled.

By Gary Cash For Junk Cars Inc, published November 15, 2026, updated November 15, 2026.

The choice

A total loss means the repair cost is too high against what the car is worth. You usually have two options. Take the settlement and let the insurer take the car, or take a lower settlement and keep the car. Whether keeping makes sense depends on what you can get for the wreck.

What to ask the insurer

1. What is the payout if the insurer keeps the car?
2. What is the payout if I keep it?
3. If I keep it, does the title get branded salvage?
4. How long do I have to move the car out of the tow yard before storage fees mount?

Selling the wreck

If you keep the car, the wreck is worth what any junk car of its weight and completeness is worth, adjusted for the damage. The valuation guide explains the factors. Compare that to the money the insurer would deduct for keeping it.

After you decide

Hold the title, your ID and the insurer’s release letter. If the car is at a tow yard, tell us the yard’s name and address; the yard will want proof of ownership. Then request your offer. Brand questions are in the salvage title guide.