If your car is totaled, you can usually buy it back from the insurance company for its estimated salvage value, which typically ranges from 10 to 25 percent of the car’s pre-accident market value. This process is called a vehicle salvage buyback or car owner retention. The exact cost depends on the car’s actual cash value, the insurance payout, and state regulations. Most insurers subtract the salvage value from your total claim payout if you choose to keep the car.
In this guide, you’ll learn:
- What it means to buy back a totaled car
- How the insurance company calculates the buyback cost
- Whether it’s worth keeping the car after a total loss
- The step-by-step process to complete a buyback
- Title laws and insurance limitations
- Common questions drivers ask after a total loss
This article helps you understand the financial and legal impact of buying back your car after a total loss and how to make the best decision.
What Does It Mean to Buy Back a Car from Insurance?
When your car is totaled, it means the cost to repair it is more than the car’s actual cash value (ACV). The insurance company then pays you the ACV, minus any deductible, and usually takes ownership of the vehicle to sell it as salvage.
But in many cases, you can choose to keep the car. This is called retaining salvage or buying back the vehicle. You agree to receive a lower payout and keep the car in its damaged condition.
How Much Does It Cost to Buy My Car Back?
The cost to buy back your totaled car is based on its salvage value. This is what the insurance company could have sold it for at a salvage auction.
Formula:
Buyback Cost = Actual Cash Value – Salvage Value – Deductible (if any)
Let’s break it down:
- Actual Cash Value (ACV): What your car was worth just before the accident
- Salvage Value: The estimated price your damaged car would sell for
- Deductible: The amount you agreed to pay out of pocket in your policy
Example Scenario:
- Car’s ACV: $9,000
- Deductible: $500
- Salvage value: $2,000
Your total claim payout would be:
$9,000 – $2,000 (salvage) – $500 (deductible) = $6,500
So you would get $6,500 in cash and keep the car.
If you wanted the full $9,000, you’d have to give up the car and let the insurer take it to salvage.
What Is Salvage Value?
Salvage value is what the car is worth in its damaged condition. Insurance companies use licensed salvage vendors to estimate this value.
Factors that affect salvage value include:
- Extent of the damage
- Year, make, and model
- Demand for parts
- Condition of the engine and transmission
- Mileage before the accident
Salvage values typically range from 10% to 25% of the ACV, but can be higher for newer vehicles or popular models with valuable parts.
Pros of Buying Back a Totaled Car
1. You Keep Your Car
You may still love your car and want to keep driving it — especially if it’s still running.
2. You Could Fix It for Less
If you know a trusted mechanic or can do some repairs yourself, you might fix the car for less than the insurance estimate.
3. You Still Get a Partial Payout
Even after buying it back, you still receive money from the insurance company (ACV minus salvage and deductible).
4. Useful for Backup or Parts
If the car is not safe to drive again, you can use it for spare parts or sell it later.
Cons of Buying Back a Totaled Car
1. It Will Likely Get a Salvage Title
This means the car has been declared a total loss and rebuilt. It can hurt resale value and limit future insurance coverage.
2. Harder to Insure
Some insurance companies may only offer liability coverage on a salvage car — not full coverage.
3. Safety Risks
Even after repairs, the car may have hidden issues that affect safety.
4. Repair Costs Might Still Be High
You might find that repairing the car costs more than you expected. And once you’ve bought it back, you can’t change your mind.
When Does Buying Back Make Sense?
Buying back your car might be a good idea if:
- The damage is cosmetic or minor
- You know the car’s history and have maintained it well
- The engine and key components still work
- You cannot afford a replacement car
- You plan to use it for short trips or non-daily driving
However, if the damage is structural or safety systems are compromised, buying it back is not worth the risk.
What Is the Process to Buy Back a Totaled Car?
Step 1: Wait for the Insurance Adjuster’s Report
After the accident, the insurer inspects the car and declares it totaled.
Step 2: Request the Buyback Option
Ask the adjuster if you can retain the vehicle. Most companies allow this, especially if your state permits it.
Step 3: Get the Salvage Value Estimate
The insurer will tell you how much they’d deduct from your payout if you keep the car.
Step 4: Make Your Decision
Review the numbers and decide whether to take the full payout and give up the car, or take a smaller check and keep the car.
Step 5: Handle the Title
In most states, the insurer will apply for a salvage title on your behalf. You will need to register it as a salvage vehicle and later as rebuilt if you repair it.
Step 6: Get Repairs and Inspection
If you plan to drive the car again, it may need an inspection to prove it’s roadworthy.
Will the Car Have a Salvage Title?
Yes. In most states, once a car is declared a total loss, the title is changed to salvage. Even if you buy it back, the title will reflect its history.
You must usually:
- Apply for a salvage title through your state DMV
- Repair the car
- Submit to an official inspection
- Apply for a rebuilt title if approved
Note: A salvage title stays with the car forever, even if it gets rebuilt.
Can You Get Insurance After Buying Back a Totaled Car?
Yes, but it depends on the insurer. Many companies offer only liability coverage on salvage or rebuilt vehicles. You may not be able to get comprehensive or collision coverage.
Some companies also require:
- Repair documentation
- Safety inspection proof
- DMV approval for road use
Contact your insurance provider before making a final decision.
Alternatives to Buying Back a Totaled Car
If you decide not to buy back the car, here are your options:
1. Accept the Full Payout
Let the insurance company keep the car and give you the full actual cash value, minus your deductible.
2. Replace the Vehicle
Use the money to buy another used or new car.
3. Use a Salvage Auction
If allowed, you could buy your car later at a salvage auction — but this carries risk and competition from other buyers.
Frequently Asked Questions
Sometimes. You can ask for a breakdown of how they calculated the salvage value and try to offer less — especially if you have quotes from local salvage yards.
If the damage was minor and repairs are done by a professional, yes. But hidden damage is always possible. Make sure to get it inspected by a certified mechanic.
Yes, but it will be worth much less. Many buyers avoid salvage cars. Dealerships may refuse to take it as a trade-in.
It usually takes 1 to 3 weeks, depending on your state’s title laws and how fast you submit paperwork.
Yes. If you caused the accident or your policy includes a deductible, it still applies — even if you buy the car back.
Final Thoughts
Buying your totaled car back from the insurance company can be a smart move in some cases. The cost depends on the car’s salvage value and your policy details. If the vehicle is still drivable or can be repaired affordably, keeping it might save you money — especially if replacing it would cost more than you can afford.
However, keep in mind the risks, title changes, and limited insurance options. Always calculate the real costs, talk to your adjuster, and understand your state’s laws.
If you want to explore new insurance quotes after a total loss or need help insuring a salvage title car, Alias Insurance can help you compare top-rated providers quickly and for free.
