What If My Car Can’t Be Repaired?

Find Law Fast Team
Jun 27
2 min read

Sometimes a crash leaves your car so badly damaged that fixing it just isn’t an option. But what does that mean for you financially, and what happens next? Here’s what you need to know if your car can’t be repaired after an accident.

1. When a Car Is Beyond Repair

A car is considered “beyond repair” or a total loss when:

The frame or structure is too badly damaged.
Safety systems (like airbags) can’t be restored.
Repair costs exceed the car’s actual cash value (ACV).

In these cases, repairing the vehicle isn’t safe or financially reasonable.

2. Insurance Company’s Role

If your car can’t be repaired, the insurer will:

Declare it a total loss.
Pay you the ACV (minus any deductible).
Take possession of the vehicle, which may be sold for salvage.

3. What If You Still Owe on the Loan?

If you’re financing or leasing the car:

The insurance payout goes to the lender first.
If the payout is less than the loan balance, you’re still responsible for the difference.
Gap insurance can cover this shortfall if you have it.

4. Can You Keep a Car That Can’t Be Repaired?

Yes, but:

The payout will be reduced by the salvage value.
The car will usually be issued a salvage title, lowering resale value.
You may have to pay out-of-pocket for repairs, which won’t guarantee safety.

5. Steps to Take If Your Car Is Beyond Repair

Get a copy of the insurance company’s valuation.
Gather records of upgrades and maintenance (to argue for higher ACV).
Review your loan or lease terms to understand your financial responsibility.
Consider whether gap insurance could help in your case.

The Bottom Line

If your car can’t be repaired, it becomes a total loss. That means the insurer pays you its value, but you may still owe money if you’re financing.

👉 If you’ve been in a car accident and your car can’t be repaired, fill out our quick questionnaire. FindLawFast will connect you with the guidance you need.

Disclaimer: This article is for general informational purposes only and should not be taken as legal or financial advice. Insurance payout rules and salvage laws vary by state and policy. Always consult a qualified professional about your situation.