Learn about the Total Loss Process

What is a total loss?

GEICO considers a vehicle a total loss when:

  • Damage to the vehicle is so severe that it cannot be repaired safely, or
  • repairing the vehicle is not economically practical, or
  • state regulations require us to do so based on the amount of damage the vehicle sustained in the accident.

What happens if my vehicle is a total loss?

When a vehicle is considered a total loss, GEICO will:

  • Pay the actual cash value of the vehicle* (plus applicable state fees and taxes) less any deductible (see below for details on who we pay and how we determine the value).
  • Take ownership of the vehicle. We transfer the title into our name, then sell the vehicle to a salvage buyer (owner may keep the vehicle - see below for details).

GEICO can only pay your claim if you have the appropriate coverage on your policy. Your claims adjuster will tell you if you do not have the right coverage.

How does GEICO determine the value of my vehicle?

Using an electronic database, GEICO examines the sale prices of similar vehicles in your local area (unless state law requires otherwise). We consider the pre-accident condition of your vehicle, including mileage, options and any damage not caused by the accident. The result of this process is the actual cash value of the vehicle. We work diligently to ensure the value we determine is accurate and fair.

What if I want to keep my total loss vehicle?

In some cases, you may be able to keep your total loss vehicle instead of turning it over to GEICO. In this situation, we pay the actual cash value of the vehicle less your deductible and less a fair salvage amount. (We get bids from salvage buyers to determine the fair salvage amount.) States have different rules about customers keeping total loss vehicles, so this option is not available to everyone. Some states have rules concerning the language a title must contain after a car has been declared a total loss (this is called title branding). Ask your claims adjuster for more information on regulations in your state if you are interested in keeping your total loss vehicle.

Who does GEICO pay when my vehicle is a total loss?

  • If you own the vehicle, we will pay you directly.
  • If the vehicle is leased, we will pay the leasing company directly.
  • If the vehicle is financed and the finance company is listed on your policy:
    • We are obligated to pay the finance company first.
    • If the settlement amount exceeds the amount you still owe the finance company, we will pay the balance to you.
    • If the settlement amount is not enough to pay off your loan, you will still be responsible for the unpaid loan balance. Note: Some finance companies offer a product called "gap insurance" to pay your loan balance in such situations. Check with your finance company to see if you purchased gap insurance when you bought your vehicle.

Do I get a replacement vehicle when my vehicle is a total loss?

If your vehicle is a total loss and you have rental reimbursement coverage, your coverage will pay for your rental vehicle (subject to your policy limits). Your claims adjuster will tell you when to return the rental when notifying you of your vehicle's value. The amount of authorized rental time at this point will be limited, so you should begin shopping for a replacement as soon as you learn your vehicle is a total loss.

What do I need to do when my vehicle is a total loss?

GEICO works hard to make claims hassle-free for our customers. When your vehicle is a total loss, please do the following:

  • Remove your license plates and personal items from the damaged vehicle only after your adjuster tells you it is OK. Leave a key with the vehicle or make arrangements to give one to your adjuster.
  • If your vehicle is leased or financed, contact your finance or leasing company and give them permission to discuss the claim with GEICO. Give your GEICO claims adjuster your account number and contact information for your finance or leasing company.
  • Promptly complete and return all forms and documents requested by your claims adjuster so we can handle your claim quickly. If you have any additional keys to the vehicle, send them to us as well.

When can I remove my total loss vehicle from my insurance policy?

You should not remove a total loss vehicle from your insurance policy until you are no longer using a rental vehicle and your damaged vehicle is no longer registered in your name. In many states, GEICO can remove the vehicle from your policy retroactive to the accident date. Visit the GEICO.com Policyholder Service Center or call 1-800-841-3000 for more information about removing a total loss vehicle from your insurance policy.

This material is intended for general information only. It does not expand coverage beyond the policy contract. Please refer to your policy contract for any specific information or questions on applicability of coverage.