When Is a Car Considered Totaled?

When Is a Car Considered Totaled?

When your car is totaled, knowing your rights can help you get a fair payout and get back on the road.

Key Takeaways



• A car is "totaled" when repair costs are too high compared to the car's actual value.
• Insurance payouts are based on what the car was worth right before the crash, not what you paid for it.
• You have the right to dispute a low offer or seek legal help if the process becomes difficult.
  

After a car crash, you’re already dealing with a lot of stress. The last thing you need is a car that can’t be fixed. When the insurance company tells you that repairs cost more than the car is worth, it’s hard to know if you are getting a fair deal or how you’ll even get back on the road. Understanding exactly what happens when your car is considered totaled can help you take back control.

What Does It Mean When a Car Is Totaled?

When a car is totaled, it means your insurance company has decided it isn’t worth fixing. If you are wondering what makes a car totaled, it usually comes down to the cost of repairs. If the bill to fix your car is too high compared to what the vehicle was worth right before the crash, the insurer will declare it a "total loss."

Insurers look at your car’s actual cash value (ACV), which is its market value today, and compare that to the repair estimate. In many states, if the repair costs reach a certain percentage of the car’s value (often around 60–80%), the car is officially totaled.

How Much Money Do You Get if Your Car Gets totaled?

If your car gets totaled, your insurance company pays you what your vehicle was worth right before the accident, minus your deductible. They don’t pay what you originally paid for the car or the cost of a brand‑new replacement.

Let’s say your insurer determines that your car was worth $15,000 right before the crash. If your deductible is $1,000, your payout would typically be about $14,000. Check your policy carefully during this time. In some cases, the value of a high-end vehicle or a major accident exceeds insurance limits, meaning the policy might not cover the full cost of your loss.

If you still owe money on a car loan, that payout usually goes to the lender first. If there’s anything left after the loan is paid off, you receive the rest. However, if the payout is less than what you owe, you may still have to pay the difference unless you have gap insurance.

Can You Keep a Totaled Car?

Yes, you can usually keep a totaled car, but it changes how much money you get. If you choose to keep it, the insurance company will take the "salvage value" (what they could have sold the damaged car for) out of your total payout.

For example, let’s say your car was worth $10,000 before the crash. Your deductible is $500, leaving you with a $9,500 payout. If you want to keep the vehicle with a salvage value of $2,000, the insurance company will subtract that from your total. In the end, you would keep your car and receive a check for $7,500.

Keep in mind that if you do this, the car will get a "salvage title." This type of title shows that the vehicle was once a total loss, which can make it much harder to insure or sell later. To drive it legally again, you will usually need to fix it, pass a state inspection, and get a "rebuilt" title.

Will Insurance Give You a New Car When Yours Is Considered Totaled?

No, your insurance company won’t automatically give you a brand‑new car just because yours was totaled, unless you bought new car replacement coverage. Most of the time, you will receive a check for the value of your used car. You can then choose how to use that money, whether you buy a newer vehicle, a used car, or nothing at all.

What Steps Should You Take After a Total-Loss Accident?

After you find out your car is a total loss, focus on understanding the claim settlement, protecting your interests, and planning your next steps.

Review the Total Loss Claim With Your Insurance

First, take a close look at the insurer’s total loss valuation and settlement offer. This breakdown will explain how they figured out the value of your car after the accident. Check how they calculated the ACV.

Next, compare that value to trusted pricing guides like Kelley Blue Book, Edmunds, or NADA to see if it makes sense. You can also check local market listings to see how much similar cars are selling for in your area. If the insurer’s offer seems too low compared to those listings, you might want to challenge their valuation.

Gather Documentation and Keep Records

Make sure to keep all your paperwork and communication organized, including:

• Your insurance claim
• The adjuster’s report
• Photos of the damage
• Maintenance records
• Receipts for any recent repairs or upgrades

Having good documentation helps you understand the offer better and can be really useful if you need to challenge the valuation later.

Consult With a Car Accident Lawyer

If your accident also involved injuries or if you’re having trouble getting fair compensation, it could help to talk to a personal injury lawyer. A lawyer can explain your rights, help you understand what your claim might be worth, and deal with insurance companies on your behalf.

Many personal injury lawyers work on a contingency fee basis, meaning you don’t pay unless they win compensation for you. It’s definitely worth setting up a consultation to see how they can help.

When Your Car Gets Totaled, Sargon Law Group Makes Sure You’re Covered

Dealing with a totaled car is hard enough without having to fight for a fair payout. It is easy to feel overwhelmed when the insurance process gets confusing or when an offer seems much lower than what you actually need to get back on the road. You deserve to have someone on your side who understands the rules and can protect your interests.

At Sargon Law Group, we make sure you don't have to face these big companies alone. Our team is here to guide you through every step, whether you are disputing a low offer or recovering from injuries. We’re dedicated to helping you get the full compensation you deserve, so contact us today for a free consultation with an experienced car accident attorney.