What Does It Mean When You Total Your Car?
March 6, 2025 | J.L. King, II
Were you recently in a car accident involving a vehicle that was “totaled”? People sometimes think the term only applies when their car is completely destroyed or ripped apart. In reality, totaling your vehicle has more to do with repair costs than how severe the damage looks.
In this blog post, we’ll explain what “totaling” a car really means, how insurance companies decide if a vehicle is totaled, and what your options might be if it happens to you. Understanding this can help you handle insurance claims more effectively after a crash.
How Insurance Companies Decide If Your Car Is Totaled
When an insurance company labels your car as a “total loss,” it usually means the cost to fix your vehicle is too high compared to what the car was worth before the accident.
Each insurer has its own formula, but the process often goes like this:
- Assess the car’s value: They look at your car’s make, model, mileage, and overall condition.
- Estimate repair costs: They review photos, mechanic opinions, and damage estimates.
- Apply their “total loss threshold”: In many places, if repair costs exceed a certain percentage (often 70-80%) of the car’s pre-accident value, the car is deemed totaled.
This process can vary by state and by insurance company. For example, one insurer might declare your car totaled if repairs cost more than 75% of its market value, while another might use 80%.
Once they consider it a total loss, the insurance company usually pays you an amount close to the car’s value before the crash—minus things like your deductible if you’re using your own policy.
Why a Car Might Be Declared a Total Loss
Even what seems like moderate damage can lead to a total loss if your car’s worth is already low. For instance, if your older car is only valued at $3,000, and it needs $2,500 worth of repairs, the insurer may consider it totaled—even though it’s not crushed or burnt up.
On the other hand, a brand-new car valued at $40,000 might need over $30,000 worth of work to be deemed a total loss. That’s a lot more damage, but it hinges on how the repair bill stacks up against the vehicle’s overall worth.
What Are Your Options if Your Car Is Totaled?
If the insurance company says your car is totaled, you usually have two main choices:
- Accept the total loss settlement: The insurer will pay you the car’s market value before the crash, minus any deductible if you’re using your policy. You won’t keep the car.
- Keep the salvage vehicle: If allowed, you might keep the “salvaged” vehicle instead of handing it over. The insurer will pay you a reduced amount, and you’ll be responsible for repairs. You might then have a car with a “salvage” or “rebuilt” title, which can affect future insurance and resale.
Which path you choose often depends on how much the car means to you and whether you think the repair costs are worth it. For some people, the insurance settlement is enough to move on. Others prefer to keep a car they know and trust, even if it has a branded title.
A Car Accident Lawyer Can Help After a Crash
When your car is labeled a total loss, it can be stressful—especially if you rely on it for daily travel. If you’re unsure how to handle an insurance claim or feel the payout is too low, you don’t have to navigate the situation alone.
Speaking with a car accident lawyer can offer you clarity and support. They can help assess your claim, negotiate with insurers, and make sure you’re treated fairly. If you were injured in the crash as well, legal guidance can be even more important to cover both vehicle and personal injury concerns.
Contact Our Car Accident Law Firm at The King Firm Car Accident and Personal Injury Lawyers For Help Today
For more information, please contact The King Firm Car Accident and Personal Injury Lawyers at your nearest location to schedule a free case evaluation today.
We have three convenient locations throughout Georgia:
The King Firm Car Accident and Personal Injury Lawyers – Tifton Office
1603 US Hwy 41, Tifton, GA 31794
(229) 386-1376
The King Firm Car Accident and Personal Injury Lawyers – Griffin Office
3317 Fayetteville Rd, Griffin, GA 30223
(404) 567-4546
The King Firm Car Accident and Personal Injury Lawyers – Macon Office
886 Mulberry St, Macon, GA 31201
(478) 292-7272
Or if you would prefer to reach out to us online, please visit our contact us page.
