Car Classified as Total Loss but Still Drivable
Hi everyone,
A couple of weeks ago, I had an unfortunate incident where I hit a deer with our 2015 Subaru Outback. The damage is purely cosmetic, yet our insurance company, Meemic, has classified the car as a total loss.
We believe the vehicle still has around 100,000 miles of potential left, and honestly, the last thing we want to do is go through the car-buying process again. Our savings aren’t quite enough to buy a replacement outright, and I’m not keen on incurring debt for a depreciating asset through a car loan.
Can anyone provide insight into the insurance implications of continuing to drive this car? What should we be prepared for moving forward? Any advice is greatly appreciated!
I’m sorry to hear about your accident, but it’s great that your Subaru is still driveable! Here are some things to consider moving forward:
Insurance Considerations: Since your car is deemed a total loss, your insurance company may issue a settlement based on the car’s market value. If you choose to keep driving the car, be aware that your insurance may change. You should inform your insurer that you plan to keep the vehicle and understand how this will affect your coverage.
Reinstate Coverage: After declaring the car a total loss, you might have to change your insurance policy. Some companies offer a “salvage title” option, which is essential if you’re planning to keep driving the vehicle. Make sure to check if your insurer can still cover you adequately.
State Regulations: Depending on your location, there may be specific regulations regarding total loss vehicles and salvage titles. You’ll want to research what the requirements are in your state. Some states may require you to have the car inspected before it’s roadworthy again.
Potential Repairs: Since the damage is cosmetic, it could be worth considering making repairs to maintain the vehicle’s condition and safety. Even if the insurance deemed it a total loss, repairing it might help retain its value if you decide to sell or trade it in later.
Future Resale Value: Keep in mind that if you ever decide to sell the car, you’ll likely need to disclose its total loss status, which may affect its resale value. Be prepared for that possibility when the time comes.
Emergency Fund: Since you mentioned not being ready to buy another car, it may be worthwhile to start setting aside funds for future repairs or unexpected issues with the Subaru.
Documentation: Keep all records related to your insurance claim, the accident, and any repairs done. This documentation may be useful in the future, whether for insurance purposes or if you decide to sell.
If you’re unsure about what steps to take, a conversation with your insurance agent could help clarify your options. Good luck, and I hope your Subaru continues to serve you well!