After a serious car accident, one of the most confusing situations drivers face is learning that their car has been declared a “total loss” — even though it still runs and can be driven. Insurance companies often use strict formulas to determine whether a car is “totaled,” but that doesn’t always mean the vehicle is destroyed or unsafe.
If you’ve been in a crash in Nevada and your car is labeled a total loss, understanding your rights and responsibilities can help you protect your financial interests and your safety.
What Does “Totaled” Really Mean?
In Nevada, a vehicle is considered “totaled” when the cost to repair it exceeds a certain percentage of its fair market value. Each state sets its own threshold. In Nevada, NRS 487.790 defines a “total loss vehicle” as one that has sustained damage “to such an extent that the cost of repair is more than 65% of the fair market value.”
That means if your car is worth $10,000 before the crash, and the estimated repair cost is $6,500 or more, your insurance company may declare it a total loss — even if the car still starts and drives. This legal definition protects both insurers and consumers by standardizing when a vehicle should be considered too costly to repair.
Why a Drivable Car Might Still Be a Total Loss
It surprises many drivers to learn that a car can be considered “totaled” yet still be drivable. There are a few common reasons this happens:
- Hidden Structural Damage: The frame or internal components may be weakened, even if the vehicle appears to be in good condition.
- Airbag Deployment: Once airbags deploy, replacement is expensive and often pushes repair costs above the total loss threshold.
- High Labor or Parts Costs: Modern cars with advanced electronics and sensors are expensive to repair, so even minor collisions can result in substantial estimates.
- Diminished Value: Even if your vehicle is repaired, its resale value drops significantly after a major accident.
In short, insurance companies often find it more cost-effective to pay out the car’s market value rather than authorize repairs — even when the car still runs.
What Are My Options After a Total Loss?
Once your car is declared totaled, you have a few choices depending on your needs and the insurance payout:
Accept the Insurance Settlement
The insurer will offer a settlement based on the car’s pre-accident market value. This value is determined through pricing guides, local listings, and comparable sales. Once you accept the offer, you typically surrender ownership of the car, and the insurance company will take possession to sell it for salvage.
Be sure to review the offer carefully — insurance companies sometimes undervalue vehicles. Gathering your own market comparisons and maintenance records can help you negotiate a fairer payout.
Retain the Vehicle (“Buy Back”)
Nevada law allows you to keep your totaled car if you choose to “buy back” the salvage from the insurance company. In this case, the insurer deducts the car’s salvage value from your total payout, and you keep the vehicle.
However, once you keep the car, NRS 487.830 requires the vehicle to be branded with a “salvage title.” That title remains on record permanently, which can reduce the car’s resale value and affect your ability to insure it later.
If you decide to keep the vehicle and repair it, you must have it inspected by the Nevada Department of Motor Vehicles (DMV) before it can legally return to the road. This inspection confirms that the vehicle is safe to operate after repairs.
File a Diminished Value Claim
Even if your car is not officially totaled, you can pursue a diminished value claim to recover the loss in market value due to the accident history. This is especially important for newer vehicles that lose resale value after a crash, even with complete repairs. You’ll need to provide evidence such as dealer appraisals or expert assessments to support your claim.
Can I Keep Driving a Totaled Car?
If your car is still safe to drive, you may be able to continue using it temporarily while you negotiate your settlement. However, once your insurer declares the car a total loss, your claim process moves quickly — and your registration may eventually be suspended once the DMV receives the salvage notice.
If you choose to retain the vehicle, you’ll likely need to obtain a salvage-rebuilt title before driving it legally long-term. Without it, the car may not be insurable, which could expose you to significant risk if another accident occurs.
Contact De Castroverde Accident & Injury Lawyers for a Free Consultation With a Las Vegas Car Accident Lawyer
Being told your car is totaled—even when it still drives—can be confusing and overwhelming. You might have questions about your rights, your next steps, and whether the insurance company is treating you fairly.
At De Castroverde Accident & Injury Lawyers, we’re here to help you understand your options and make informed decisions. Contact our Las Vegas car accident lawyers today for a free, no-pressure consultation. We can discuss your situation and determine the best course of action.
We have three locations in Nevada for your convenience, including Las Vegas, Summerlin, and Henderson. We’re proud to serve Clark County and the surrounding areas.
De Castroverde Accident & Injury Lawyers – Las Vegas Office
1149 S Maryland Pkwy, Las Vegas, NV 89104
(702) 222-9999
De Castroverde Accident & Injury Lawyers – Summerlin Office
410 S Rampart Blvd, Ste 480 Las Vegas, NV 89145
(702) 964-1806
De Castroverde Accident & Injury Lawyers – Henderson Office
9555 S Eastern Ave, Las Vegas, NV 89123
(702) 800-3455
About the Author
Alex De Castroverde earned his law degree from Nova Southeastern University Shepard Broad College of Law and is licensed to practice in Nevada. He is a dedicated trial lawyer who assists clients across Las Vegas in a wide range of legal matters, with a focus on personal injury. Alex has successfully represented clients in cases involving car accidents, catastrophic injuries, truck accidents, motorcycle accidents and more. Click here to learn more about the outstanding case results Alex has achieved for his clients.
