What Happens if Your Car Is Totaled? I Found Out the Hard Way

In October 2021, I was in a minor car accident that totaled my vehicle. Despite my many years of getting in car crashes, this was my first time experiencing a total loss. Seeing how the process worked taught me a lot about car insurance. And it gave me a new appreciation for how the best car insurance companies take care of customers in their moments of maximum need.

How I totaled my car: A fascinating true story

My car-destroying crash happened while driving my kids to a soccer game. I was trying to enter the freeway in a poorly-arranged road construction zone with too much traffic. There wasn't enough room for me to merge into my lane, and I suddenly had to stop without realizing how little stopping distance I had. I slammed on the brakes and collided with the car in front of me.

I wasn't even going fast, but it was enough. My car was an old sedan (a 1997 Honda Accord) and the car I hit was a sturdy new Subaru SUV. Because the other car's bumper was higher than mine, colliding with the other car's rear undercarriage dented and wrecked my car's headlights, hood, and most of my car's engine.

I was buzzing with adrenaline, but not in a good way. I don't remember the order that it happened, but somehow I managed to do everything on this list.

1. Check with the other driver

If you're ever in a car crash, especially on the freeway, you should start by checking with the other driver to see if anyone was injured. Fortunately, no one was.

2. Exchange contact info and car insurance details

I gave the other driver a copy of my insurance card so they could file a claim against my liability insurance. I got a copy of their insurance too, and their name and phone number.

3. Take photos of the crash

One good thing about smartphones is that they make it much easier to get high-definition photos of car crashes. I took a few photos of every heavily dented angle, in case they were needed by my insurance company.

4. Call the police

Since no one was hurt and we didn't need an ambulance, I didn't call 911. Instead, I called the police non-emergency line and told them about the crash. A police officer arrived at the scene, reviewed the crash site, and filled out a police report about the accident. I wasn't cited for a traffic violation -- the police officer determined that I was not speeding or intoxicated or failing to maintain control; it was just an accident.

5. Call a tow truck for my car

My car was so badly damaged it wouldn't start, so we needed a tow truck to get it off the freeway. The truck also arrived quickly, which was a big relief. Just by looking at my smashed-up car, the tow truck driver thought it might be totaled. I didn't have roadside assistance coverage with my car insurance, so I had to pay the cost (about $100) to tow my totaled car to the tow company's garage, where it would be inspected by my car insurance company.

6. Call my car insurance company

I called my car insurance company's customer service line and told them I'd been in a crash and that I thought it was totaled. The customer service person explained the next steps of the process, and how long it would take. The car was out of my hands now; it would get towed to a garage and reviewed by the insurance company.

7. Get all the stuff out of the totaled car

The tow truck pulled my car off the freeway onto an exit ramp. I called my wife and she came to help me get all our stuff out of the car. We had to get the car completely cleared out -- because the car was (likely) totaled, we weren't going to see it again.

A few days later, my car insurance company called and notified me that yes, my car was officially totaled. They sent me an insurance assessment, showing how much money I would get for the car. Even though my car was 24 years old and ruined, it still fetched a surprising amount of money: I got about $2,000 in cash for my totaled car, after paying my deductible.

Lessons of total loss: Why I love my car insurance company

First of all, the most important thing is that no one was hurt. Cars can be replaced, but people are priceless. But here are a few of the personal finance and car insurance lessons that I gained from this experience:

• I'm glad I didn't need gap insurance: My car was old (1997 model) and fully paid off. I didn't have an auto loan and I didn't need gap insurance to cover the difference between what my car was worth and what I owed on a loan.
• I'm glad I had collision coverage: I'm glad I had more than minimum liability coverage. Because I had collision coverage, I was able to get some cash for my totaled car.
• I'm glad my car insurance company has great service: The best car insurance companies will help you take care of everything and guide you through the process for a totaled vehicle. The whole experience wasn't "fun," but my insurance company made it easier.

Bottom line: If your car gets totaled and you have collision coverage or comprehensive coverage, your car insurance company can help you get back on your feet. Don't be too quick to cancel your collision insurance; your totaled car might be worth more than you think.