What does totaled car mean?

When a car is considered a "totaled" or "total loss," it refers to the concept that the cost to repair or restore a damaged vehicle exceeds the value of the car. Insurance companies typically determine a vehicle as totaled when the repair costs are estimated to be more than a certain percentage of its actual cash value (ACV) – often between 70% to 80%. Here are some scenarios in which a car may be declared totaled:

1. Extensive Damage: If a car has sustained substantial structural damage, such as severe frame damage, roof collapse, or flooding that compromises its safety and integrity, it may be deemed totaled. These types of damage may be irreparable or not economically viable to fix.

2. Repair Cost Exceeds Value: Even if a car is repairable, when the estimated cost of repairs surpasses the vehicle's pre-accident market value, the insurance company may decide to total the car. This often happens when the repairs include replacing major components or systems.

3. Salvage Value: Insurance companies consider the salvage value of the vehicle when determining whether to total it. If the market value of the salvageable parts is sufficiently high, it can offset some of the repair costs. However, if the repair costs still exceed the combined value of the parts and the repaired car, the vehicle may be declared a total loss.

It's important to note that insurance policies and total loss criteria may vary among different insurance companies, and the decision may also depend on factors such as regional cost variances and specific state laws. If your car has been declared a total loss, it is essential to review the insurance policy and valuation with your insurance provider to fully understand the process.