For example, if a car has an ACV of $10,000 and the estimated cost of repairs is $8,000, the car would likely be considered totaled. This means that the insurance company would pay the owner the ACV of the car minus any applicable deductible, and the owner would be responsible for disposing of the vehicle.
In some cases, a car may be considered totaled even if the cost of repairs is less than the ACV. This can happen if the car is so severely damaged that it is not safe to drive or if the repairs would significantly diminish the car's value.
If your car has been involved in an accident, you should contact your insurance company as soon as possible to have it inspected and to determine whether it is repairable or needs to be totaled.
