Car Insurance When do insurance companies total a car? View Carriers Please enter valid zip Compare top carriers in your area By Insure.com's Editor | Updated on May 25, 2023 The page is part of the topic how to keep your totaled car Why you can trust Insure.com Quality Verified At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry. Insurance companies deem a car a total loss when the cost of repairs exceeds a certain percentage of the car’s actual cash value (ACV) before the accident. This threshold varies across companies and states, typically between 70% to 100%. Factors leading to total loss decision Repair costs – If the estimated repair costs approach or exceed the predetermined percentage of the car’s value, it’s more cost-effective for insurers to declare it a total loss. Safety and structural damage – Extensive structural damage or safety concerns might render the car unsafe, even if repairs are possible. State regulations – Regulations in your state can influence the total loss determination process. The total loss process Damage assessment – An adjuster inspects the damage and calculates repair costs. Comparing costs – Compare the repair costs to the car’s ACV before the accident. Decision and settlement – The car is deemed a total loss if repair costs exceed the threshold. You’ll receive a settlement based on the car’s pre-accident value minus the deductible. Conclusion Understanding when car insurance companies total a car helps you predict outcomes and make quick decisions after an accident. Factors like repair costs, safety concerns, and state regulations all play a role in determining whether a car is a total loss. In case you missed it Best Car Insurance Companies of 2024 Car insurance rates by state in 2024 What is full coverage car insurance? How much does car insurance cost for seniors in 2024? A complete guide to adding a teenager to your car insurance policy in 2024 What to do after a car accident that’s not your fault Total warfare: What to do when your auto insurer totals your car Car insurance claims: Who gets the claims check? Used car insurance costs: Most and least expensive models to insure The Best Car Insurance for Bad Credit of 2021 The best car insurance companies for speeding tickets Car insurance after a DUI Guide to car insurance discounts Proper insurance coverage for college-bound children How to read actually understand your auto insurance policy Car Insurance Companies New driver insurance grace period: What you need to know How much do insurance agents make Autonomous cars: 5 delightful and 5 distressing things Busted! Part 1: How insurance companies spot bogus claims Insurance options for rideshare drivers 10 things that are illegal but shouldn’t be 1/1 On this page Factors leading to total loss decisionThe total loss processConclusion Get instant quotes now ! Please enter valid zip Get Quotes