When you find yourself in the unfortunate situation of a car being declared “totaled” after an accident, dealing with the aftermath can be a challenging experience.
There are certain things you need to do after your car is totaled, but is notifying the Department of Motor Vehicles (DMV) about the totaled vehicle among them? Do you need to notify the DMV if your car is totaled?
Yes, you need to notify the DMV if your car is totaled within 10 to 30 days. As long as you’re filing an insurance claim for the totaled vehicle, planning to cancel your registration or transfer the plates to a new vehicle, you need to inform the DMV of the totaled vehicle.
Do I Need to Notify the DMV if My Car is Totaled?
Yes, it is generally necessary to notify the DMV if your car is totaled for legal compliance and to transfer the ownership of the vehicle, cancel the registration, and ensure a smooth insurance claim process.
Failure to inform the DMV can lead to penalties, fines, and liabilities associated with the totaled vehicle.
Notifying the DMV about your totaled car helps to get a title transfer or a salvage certificate from the DMV to enable you to get a settlement from your insurance company.
How To Notify the DMV of My Totaled Car?
Follow these steps to notify the DMV about your totaled car:
Step 1: Contact Your Insurance Company
After experiencing an accident that results in your car being totaled, the first thing you should do is contact your insurance company. They’re there to assist you through the claims process.
When you report the accident, provide them with all the necessary details, including when and where it happened the accident happened, and any important information about other parties involved.
Step 2: Receive a Total Loss Declaration
Once your insurance company assesses the damage to your car, they’ll determine whether it’s considered totaled. This decision is based on factors such as the extent of the damage compared to the car’s value.
If your car is indeed totaled, your insurance company will issue what’s called a “total loss declaration”. This document formally states that the vehicle is beyond repair or that the cost to repair it exceeds its value.
Step 3: Submit Required Forms
Depending on your insurance company’s procedures, they may require you to fill out forms related to the total loss declaration to help formalize the process and ensure that both you and the insurance company have a clear understanding of the situation.
It’s important to complete these forms accurately and immediately to speed up the claims process.
Step 4: Notify the DMV
With the total loss declaration in hand, you’ll need to inform the DMV about the situation. This involves submitting a copy of the total loss declaration or similar documentation to the DMV.
By doing this, you’re updating the DMV’s records to reflect that your car has been totaled which is important for legal and administrative purposes, as it removes the vehicle from your ownership and prevents any future issues related to its status.
However, each state has its requirements and procedures for dealing with totaled cars. Some states may require you to surrender the car’s title or obtain a salvage title, which designates the vehicle as salvage or non-repairable.
Step 5: Cancel Registration and Plates
After notifying the DMV about the totaled car, you’ll likely need to cancel the vehicle’s registration and return its license plates or use the license plate for another vehicle of yours.
This process helps finalize the removal of the car from the DMV’s records and prevents any future liability issues. Failure to cancel the registration and return the plates could result in unwanted fees or penalties down the line.
After submitting the necessary documentation to the DMV, endeavor to follow up to ensure that everything has been processed correctly.
You can contact the DMV directly or check online to verify that the information has been updated in their records. This step provides peace of mind and ensures that there are no lingering issues related to the totaled car.
Why You Should Notify the DMV if Your Car is Totaled
Here are the reasons why you should notify the DMV if your car is totaled:
1. It’s a Legal Requirement
One of the primary reasons why you should notify the DMV about your totaled car is legal compliance. Each state has specific regulations regarding the reporting of totaled vehicles.
In many instances, the responsibility lies with the insurance company to report the total loss to the DMV. However, car owners should confirm their state’s requirements to ensure they are adhering to the law.
2. Transfer of Ownership
When a car is declared totaled, it often means that the vehicle is no longer roadworthy or safe to drive. In such cases, owners may decide to sell the car for salvage or scrap.
Notifying the DMV about the total loss is important as it initiates the necessary paperwork for transferring ownership.
Failing to inform the DMV might result in complications if the vehicle changes hands, leaving the previous owner liable for any issues associated with the car.
3. Cancellation of Registration
Another important aspect of notifying the DMV is the cancellation of registration for the totaled vehicle.
Keeping an active registration on a car that is no longer in use can lead to complications, such as receiving a citation/ticket or being held responsible for any incidents involving the vehicle.
However, by informing the DMV, you initiate the process of canceling the registration, ensuring that you are not held accountable for any future occurrences related to the totaled car.
4. Insurance Claim Process
In the aftermath of an accident leading to a totaled car, filing an insurance claim is a common course of action. Insurance companies handle the reporting of total losses to the DMV.
However, car owners need to ensure this step is taken immediately. Delaying the notification can lead to unnecessary complications in the claims process and may even result in additional liabilities.
As reiterated earlier, notifying the DMV about your totaled car will help you get a title transfer or a salvage certificate from the DMV which will enable you to get a settlement from your insurance company.
5. Avoiding Penalties and Fines
Failing to notify the DMV about a totaled car can lead to penalties and fines, hence why you should notify them.
In many states, there are timeframes within which the notification must be submitted. Mostly between 10 – 30 days.
Failure to comply with these deadlines can result in financial penalties and other legal consequences.
6. Preventing Future Liabilities
Even after a car is declared totaled, there might be lingering liabilities if the DMV is not notified.
For example, if the vehicle is involved in illegal activities or accidents after being declared totaled, the previous owner might be held responsible if the proper channels were not followed to transfer ownership or cancel the registration.
Notifying the DMV acts as a safeguard against future liabilities associated with the totaled vehicle.
Conclusion
The importance of notifying the DMV when your car is totaled cannot be overstated. It is an important step in legal compliance, facilitating the transfer of ownership, canceling the registration, and ensuring a smooth insurance claim process.
Failing to inform the DMV can lead to legal consequences, penalties, and even lingering liabilities. So, yes, you must notify the DMV after your car is declared totaled.
