A totaled car, often referred to as a “total loss,” is a car that has sustained damage to such an extent that repairing it would cost more than its current market value.
When a car is deemed a total loss, several administrative steps follow, involving insurance claims, title transfers, and the handling of the vehicle’s license plates. So, what happens to the license plates when a car is totaled?
When a car is totaled, the owner retains the right to keep their license plates. He/she can remove the license plates, transfer them to a new vehicle, or return the plates to the DMV if he/she does not plan to use the plates anymore.
What Happens to the License Plates When a Car is Totaled?
Here’s what happens to the license plates when a car is totaled:
1. The Owner can Remove the License Plate from the Car
When a car is declared totaled, the first thing that happens to the license plates is removing them from the car. It is the duty of the car’s owner to ensure the plates are removed.
He can achieve this by carefully unscrewing each screw holding the license plates to the car and detaching the plates from the totaled car.
Once the plates are removed, the owner should store them in a safe place to ensure they are not lost or damaged and are readily available for the next steps in the process.
2. Transfer the Plates to Another Vehicle
When a vehicle is totaled and you plan to replace the car with a new one, you can transfer the existing license plates to the new one you wish to purchase.
However, if you have purchased the vehicle already or have another vehicle you wish to use the plates on, you can do so by contacting the DMV and notifying them of your intention to use the license plates for another vehicle that belongs to you.
Some states offer online services for transferring plates, so check if this option is available. At the DMV, you’ll need to fill out forms to transfer your plates. These forms are:
- Vehicle Registration Form: This form updates the DMV on your new vehicle’s details.
- Plate Transfer Form: This form indicates your intention to transfer the plates from the totaled vehicle to the new one.
You’ll be required to present several documents, including:
- Proof of ownership of the new vehicle (title or bill of sale)
- Proof of insurance for the new vehicle
- Identification (driver’s license or state ID)
- The current registration card for the plates being transferred
- Any forms required by your state DMV
There is usually a fee associated with transferring license plates. The amount is not the same in all states but is generally less than the cost of obtaining new plates. Once the transfer is processed, attach the plates to your new vehicle.
However, each state has its own rules and regulations regarding plate transfers. Here are a few examples:
- California: License plates generally stay with the vehicle, but personalized and specialty plates can be transferred to a new vehicle. However, the owner must complete a Special Interest License Plate Application and pay a transfer fee.
- Florida: License plates are assigned to the owner, not the vehicle. To transfer plates, visit the local tax collector’s office with the necessary documents and pay a transfer fee.
- Texas: License plates stay with the owner. When transferring plates, complete the Application for Texas Title and/or Registration form, and pay the required fee at the DMV.
- New York: License plates must be transferred or surrendered. To transfer, bring the plates, the registration card, proof of insurance, and the title of the new vehicle to the DMV. A transfer fee applies.
Be that as it may, the benefits of transferring the plates to another vehicle are:
- It Saves Costs: Transferring plates can save you the cost of new plates and the associated registration fees. This can be beneficial if you have personalized or specialty plates.
- It’s More Convenient: Keeping your existing plates simplifies the administrative process, especially if you have personalized plates that are easily recognizable.
- It Ensures Continuity: Retaining the same plates maintains consistency, which can be useful for record-keeping and avoiding confusion.
3. Return the Plates to the DMV
When your car is totaled and you choose not to transfer the license plates to a new vehicle, your next step should be to return the plates to the DMV and ensure they are properly de-registered.
You can’t just remove the plates are keep them with you just like that. You can retain it but you must contact the DMV. Also, you can’t just keep it without using it.
You can return them to the DMV to ensure they cannot be misused by another party. If plates are left on a totaled vehicle, the new owner could use them, leading to legal issues or fines for the original owner.
Moreover, returning the plates formally ends the vehicle’s registration, preventing any future registration or insurance fees associated with the vehicle.
Therefore, to return the plates to the DMV, you need to visit your state’s DMV website or contact them to understand the requirements and procedures for returning plates. Some states may have different processes or forms that need to be completed.
Gather the necessary documents, which may include:
- The license plates
- The vehicle registration card
- Proof of identity (e.g., driver’s license)
- A completed surrender form, if required by your state
You can however return the plates either in person at a DMV office or by mail. If you’re mailing the plates, ensure you follow the DMV’s instructions carefully, which may include sending them to an address and using a traceable mailing method.
After the plates are returned, make sure to obtain a receipt or confirmation from the DMV as proof that you have surrendered the plates which can protect you in case of any future disputes.
After returning the plates to the DMV, endeavor to notify your insurance company that the vehicle has been totaled and the plates have been surrendered. This will help in adjusting your policy and obtaining a refund for any unused premium.
You can also inform any other applicable parties, such as toll agencies, that the vehicle is no longer in use and the plates have been surrendered to prevent future charges or penalties.
4. Recycle the Plates
If you’re instructed by the DMV to recycle the plates, you should do so properly. If the DMV tells you to do this, they will provide information on how to recycle the plates in an environmentally friendly way.
Moreover, recycling a license plate number is a responsible way to dispose of them, especially if they are no longer in use. Before recycling, it’s recommended to make the plates unusable by:
- Using a permanent marker to scribble over the numbers and letters, making them illegible.
- Physically bend or cut the plates to prevent them from being reused.
Locate a recycling center that accepts aluminum license plates and recycles the plates. You can either drop off the plates at the recycling center or mail them to the address if the DMV provides such an option.
This is what happens to license plates when a car is totaled.
Conclusion
What happens to license plates when a car is totaled depends on what the car owner wants. After removing the plates from the totaled car, the owner can either transfer the plates to another vehicle by updating the registration with the DMV or surrender the plates to the DMV according to his state regulations.
The plates can be recycled but must be on the instruction of the DMV. If instructed by the DMV or if the plates are not being reused, they should be properly recycled by taking them to a recycling center.
