If you’ve ever been in a serious accident, you may wonder, “What happens to license plates when a car is totaled?” In California, there are several important rules regarding how to handle a totaled vehicle, including the license plates. The Law Offices of Jacob Emrani have some helpful information regarding the DMV total loss requirements in California, what to do with plates after a total loss, and more.
What Does It Mean When a Car Is Totaled?
So, what does it mean to have a totaled vehicle? According to most insurance companies, having a totaled car means the cost of repairs, plus its salvage value, is equal to or more than the vehicle’s actual cash value. You must meet certain requirements to be compensated by your insurance company. One of those requirements includes turning in your license plates to the DMV and notifying them that your car is totaled.
In the state of California, you must know how to report a totaled car to the DMV, since they are not notified automatically. The process starts with applying for a Salvage Certificate or Nonrepairable Vehicle Certificate as soon as possible after your insurance company declares your vehicle a total loss. Failing to submit this application in time may result in your not receiving an insurance settlement. A non-repairable or totaled car, according to the DMV in California, must meet one of these criteria to issue the certificate:
- The owner has declared that the vehicle is solely a source of parts or scrap metal.
- The vehicle has been completely stripped, also known as a “surgical strip.”
- The vehicle is now a completely burned shell and has no usable or repairable parts.
If your vehicle matches any of these descriptions, you will receive a Salvage Certificate shortly after you apply. It’s important to note that once you receive the certificate, your vehicle cannot be titled or re-registered.
What Happens to the License Plates When a Car Is Totaled?
Do you keep your license plates when your car is totaled? While specific requirements vary by state, you must return your license plates if your car is totaled. There are several options to choose from when surrendering your plates. Most states will let you walk into the DMV and turn over your plates to a clerk. Make sure that you get a receipt or some other form of documentation as proof that the plates have been surrendered.
Do You Need to Return License Plates After a Total Loss in California?
If you’ve ever asked, “Do I need to return license plates after total loss?” The answer is yes. In California, you have 10 days to surrender your vehicle’s license plates and pay the Salvage Certificate fee. Aside from mailing the plates to the DMV or delivering them directly, you may also turn them in to a local police station.
Failing to surrender your plates may result in fines, fees, and possible suspension of your driver’s license. You may also continue to pay insurance and registration costs if you don’t return the plates to the DMV.
How to Cancel or Transfer Registration After a Totaled Vehicle
After a major auto accident, you will also need to cancel the car registration after a total loss. Two scenarios may apply. One is that the insurance company takes the vehicle, and the other is that you keep the vehicle.
If the insurance company takes the vehicle, you must complete and submit a Notice of Transfer and Release of Liability (NRL) to the California DMV by mail or online. Make sure you include your insurance company’s name and address as the new owner, your vehicle’s information (including the VIN, odometer reading, and license plate number), and the date of the accident. It’s also wise to check with your insurance company to confirm how to surrender the vehicle title.
If you’re keeping the vehicle, you’ll need to file the “Application for Salvage Certificate or Nonrepairable Vehicle Certificate” with the California DMV, surrender the license plates within 10 days, and pay the fee required for the salvage certificate. Your insurance company should give you the certificate of title to help you complete this process. This may be an option if you own your vehicle outright, but if you owe on a loan or lease the vehicle, the lender or dealer will determine whether you can keep it after a total loss.
Can You Reuse Your Old Plates for a New Vehicle?
If you’re curious, “Can I reuse my old license plates in California?” The answer in most cases is no. The plates are tied to the vehicle, not the owner. You might be able to keep and reassign certain personalized, special interest, or special recognition plates and reassign them to a different vehicle you own. If you go this route, you’ll need to apply for the plates to be transferred to another vehicle, and the specific forms and steps you must take depend on your unique situation. The California DMV requires you to submit the forms and pay any associated fees if you want to reuse the plates.
What to Do After the Insurance Declares a Total Loss
Dealing with a total vehicle loss after an accident is stressful, but knowing what steps to take afterward is important. Here’s what to do after insurance declares a total loss.
- After the accident, remove all of your belongings from the vehicle, including the registration, personal items, and other paperwork from the trunk, glovebox, and other areas of the car.
- Remove the license plates from your vehicle and follow the tips above to return them to the California DMV within 10 days of the accident.
- Review the settlement offer from your insurance company carefully, and consider hiring an experienced auto accident attorney if you’re not satisfied with the amount, because they can help with your total loss claim if you need to go to court.
- Gather important documents, including your registration, repair invoices, and loan or lease documents, to help determine the value of your vehicle.
- Decide whether you plan to sell the car back to your insurance company or if you’d rather keep the vehicle.
- Once ownership of the totaled vehicle has transferred, cancel your insurance policy to prevent excess charges.
Contact The Law Offices of Jacob Emrani Today
If you’ve been in a major accident in California and your vehicle is totaled, the professional team at the Law Offices of Jacob Emrani is here to help. We’ll fight to make sure that you receive maximum compensation. To learn more or to schedule a free consultation, call (888) 981-7706, or contact us online today.
