Total Loss

A vehicle is considered a Total Loss when the cost to repair is greater than the vehicle’s value or the car cannot be repaired at all. For example, if a car is worth $10,000 and the repairs would cost $10,000, the insurance company would declare the car totaled. Please note that the price to repair does not equal the actual cash value. Insurance companies can decide to deem a vehicle a Total Loss when the cost of repair PLUS the “salvage value” PLUS the cost a rental vehicle equal or exceed the value of your vehicle. Do not think that an insurance company will pay $10,000.00 to repair a car worth $10,000.00. The insurer may then reimburse the vehicle’s “actual cash value,” which is what the car was worth prior to being damaged.

Key Things to Know About Totaled Cars: Insurance adjusters are the ones who determine whether a car is a total loss, not the collision center. We have zero control over how much will be paid toward a repair. Totaled cars can be covered by comprehensive, collision, or property damage liability insurance, depending on the situation. If your totaled car is leased or still has an outstanding loan balance, your insurer will first reimburse your lender or leaseholder. You will then be held accountable for any funding still owed to pay-off the loan. (Note: ALWAYS buy Gap-Insurance) You may have the option to keep a totaled car, but it is likely not worth it. Ask your repair specialist how your specific insurance carrier handles total loss claims and if “buying back” your total loss is worth it.