JUSTICENTER Personal Injury Lawyers | August 12, 2025 | Car Accidents
Imagine you’re driving along the 101 through Encino, or pulling out of a parking space near Balboa Park. Then it happens — a collision leaves your car totaled. Fortunately, you’re unharmed, but the vehicle is no longer drivable.
While your insurance company may already be processing the claim, there’s an important step many people overlook: canceling the vehicle’s registration with the California DMV. Failing to do so could result in unexpected tickets, late notices, or even liability for incidents involving the car after it has left your possession.
The process is straightforward, but it’s important to follow the correct steps to protect yourself from future issues.
- Determine if Your Car Is a Total Loss
After a car accident in California, your insurance company will determine whether your vehicle qualifies as a “total loss.” Unlike some states that use a fixed percentage to make this determination, California applies a specific formula. A vehicle is considered a total loss if the cost of repairs, when added to its salvage value, equals or exceeds its actual cash value.
For example, if your car’s market value is $10,000, the repair cost is $6,500, and the salvage value is $3,600, the combined amount exceeds the car’s value. Under California’s formula, that vehicle would be deemed a total loss.
While some insurance companies may apply their own thresholds—such as 75% of the vehicle’s value—for internal purposes, it is the state’s legal formula that determines the DMV’s classification.
- Getting a Salvage or Nonrepairable Certificate
Once your insurance company declares your vehicle a total loss, you must file the appropriate certificate with the California DMV. If the vehicle could potentially be repaired and driven again in the future, you will need a Salvage Certificate. If the vehicle is beyond repair, you will need a Nonrepairable Certificate. Both certificates are issued using the same DMV form.
To obtain the certificate, you must submit the vehicle title, complete the required DMV application, and surrender the license plates. California law requires that you complete this process within 10 days of the total loss determination, so prompt action is important.
Once the DMV receives your documents, it will process the request and send confirmation that the vehicle is no longer registered in your name.
- File a Notice of Transfer and Release of Liability (NRL)
If you transfer the vehicle to your insurance company or a salvage yard, you must notify the California DMV that it is no longer in your possession. This is done by filing a Notice of Transfer and Release of Liability (NRL) form. The form can be submitted online or by mail, but it is essential that you complete it.
Filing the NRL officially removes your responsibility for the vehicle, protecting you from potential legal or financial issues if anything occurs involving the car after it has been transferred.
- Cancel the Registration
Once the DMV has received your certificate and Notice of Transfer and Release of Liability, you can proceed to cancel the vehicle’s registration. If you have not already surrendered the license plates, you should do so at this stage. Completing this final step ensures your name is removed from the DMV’s records and eliminates any future liability associated with the vehicle.
Optional: Requesting a Refund
One detail that is often overlooked is the potential for a partial refund of the Vehicle License Fee (VLF) if your car was totaled before the end of your current registration year. To request this refund, complete Form REG 65 and submit it along with your certificate.
The refund amount is based on the remaining time in your registration period, minus a processing fee. If the remaining balance is minimal, no refund will be issued; however, if the amount is significant, it may be worth pursuing.
Pro Tip: Save Your Receipts
Always retain proof of any submissions you make to the DMV. If you surrender forms, license plates, or titles in person, request a copy or take a photo for your records. When filing documents online, save the confirmation page or take a screenshot.
Errors can occur, and having clear documentation will make resolving any issues significantly easier.
Special Case: Keeping and Repairing the Car
You may choose to keep a totaled vehicle, but additional steps are required before it can legally return to the road. In this case, you must apply to register it as a Revived Salvage Vehicle. The process includes a DMV inspection, passing both brake and light checks, and submitting a new title application.
Once these requirements are met, the DMV will issue a new title; however, the vehicle’s salvage history will remain permanently recorded.
Even if You Repair It, Cancel the Registration First
Even if you intend to repair the vehicle, once it has been declared a total loss, the DMV still requires the appropriate certificate and the cancellation of the registration. Completing this process ensures your name is removed from the vehicle record and protects you from potential legal or financial issues in the future.
A Personal Injury Lawyer Can Help
Canceling a totaled vehicle’s registration in California safeguards you from future liability. If someone else’s negligence caused your accident, you may also be entitled to compensation for medical costs, lost income, and other damages. A personal injury lawyer can help you manage both the DMV process and your legal claim, allowing you to focus on recovery.For help, contact JUSTICENTER Personal Injury Lawyers to schedule a free consultation with a personal injury attorney.
Contact the Encino Personal Injury Lawyers of JUSTICENTER Personal Injury Lawyers for Help Today
Please contact an experienced personal injury lawyer at JUSTICENTER Personal Injury Lawyers for a free initial consultation today at (833) 852-3600.
Our main office is in Encino, CA, but we serve all through Los Angeles County.
JUSTICENTER Personal Injury Lawyers
16633 Ventura Blvd suite 1011,
Encino, CA 91436
