What Is Owner Retention After A Total Loss?

After a serious car accident in Miami, learning that your vehicle has been declared a total loss can feel like a second blow, especially if you want to keep the car. Many drivers assume a total loss means the vehicle must be surrendered to the insurance company. In Florida, that is not always the case. With the right information and guidance from a Miami personal injury lawyer, owner retention may be an option. 

When Is a Car Considered a Total Loss in Florida?

Florida follows a statutory total loss threshold. A vehicle is generally deemed a total loss when the cost to repair it equals or exceeds 80 percent of its actual cash value (ACV) immediately before the crash. Insurers calculate ACV using factors such as mileage, condition, comparable vehicle sales, and depreciation. Importantly, this determination is financial, not mechanical. A car may still be drivable or repairable and yet qualify as a total loss under the law.

Owner retention allows you to keep your vehicle even after it is declared a total loss. Instead of taking possession of the car, the insurer pays you the ACV minus the vehicle’s salvage value. Salvage value reflects what the insurer could have recovered by selling the damaged car to a salvage yard or auction. By deducting that amount from your settlement, the insurer transfers the vehicle back to you.

This option can make sense when the damage is cosmetic, when you have a trusted mechanic who can repair the car affordably, or when the vehicle has sentimental or practical value that exceeds its market price.

Are There Title and Insurance Implications?

Keeping a totaled vehicle in Florida usually requires a title change. Depending on the extent of the damage, the car may receive a salvage title or, after repairs and inspection, a rebuilt title. This process involves compliance with Florida Highway Safety and Motor Vehicles requirements.

Additionally, some insurers limit coverage on salvage or rebuilt vehicles, particularly for collision and comprehensive coverage. Understanding these downstream consequences is critical before electing owner retention.

Insurance companies frequently undervalue vehicles by using generic comparables or overlooking upgrades. If the ACV is too low, the owner retention payout will also be reduced, potentially making it harder to justify keeping the car. A lawyer can challenge valuation errors, present evidence of higher market value, and ensure the settlement accurately reflects your loss.

Total loss issues often overlap with bodily injury claims. A Miami personal injury lawyer can coordinate both aspects to protect your overall recovery, ensure property damage negotiations do not undermine your injury claim, and evaluate whether owner retention is financially sound. Counsel can also identify additional coverage, such as gap insurance or uninsured motorist property damage, that may affect your options.

Do you love your car? A total loss does not automatically mean goodbye. If your vehicle was totaled and you want to explore keeping it, speak with the experienced attorneys at Spencer Morgan Law. Doing so can help you make an informed decision. Call 305-423-3800 to book a confidential consultation.